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Do small states get more federal monies?: myth and reality about the US Senate malapportionment

Larcinese, Valentino ORCID: 0000-0002-7780-3093, Rizzo, Leonzio and Testa, Cecilia (2009) Do small states get more federal monies?: myth and reality about the US Senate malapportionment. Economic Organisation and Public Policy Discussion Papers (EOPP/2009/7). Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

We analyze the relationship between senate malapportionment and the allocation of the US federal budget to the states during the period 1978-2002. A substantial literature originating from the influential paper by ?) finds that small and overrepresented states get significantly larger shares of federal funds. We show that these studies suffer from fundamental identification problems and grossly overestimate the impact of malapportionment. Most of the estimated impact is not a scale but a change effect. Rather than evidence of ”small state advantage", we find that states with fast growing population are penalized in the allocation of the federal budget independently of whether they are large or small.

Item Type: Monograph (Discussion Paper)
Official URL: http://sticerd.lse.ac.uk/eopp/_new/publications/se...
Additional Information: © 2009 the authors
Divisions: Government
STICERD
Subjects: H Social Sciences > HC Economic History and Conditions
J Political Science > JK Political institutions (United States)
JEL classification: H - Public Economics > H6 - National Budget, Deficit, and Debt > H61 - Budget; Budget Systems
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legislatures, and Voting Behavior
H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H77 - Intergovernmental Relations; Federalism; Secession
Date Deposited: 13 Oct 2009 16:07
Last Modified: 01 Nov 2024 04:09
URI: http://eprints.lse.ac.uk/id/eprint/25493

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