Authors
Anne C Case, Harvey S Rosen, James R Hines Jr
Publication date
1993/10/1
Journal
Journal of public economics
Volume
52
Issue
3
Pages
285-307
Publisher
North-Holland
Description
This paper formalizes and tests the notion that states' expenditures depend on the spending of similarly situated states. We find that even after allowing for fixed state effects, year effects, and common random shocks among neighbors, a state government's level of per capita expenditure is positively and significantly affected by the expenditure levels of its neighbors. Ceteris paribus, a one dollar increase in a state's neighbors' expenditures increases its own expenditure by over 70 cents.
Total citations
Scholar articles
AC Case, HS Rosen, JR Hines Jr - Journal of public economics, 1993
AC Case, HS Rosen, JR Hines - … LIBRARY OF CRITICAL WRITINGS IN ECONOMICS, 1998
AC Case, HS Rosen, JR Hines Jr - The Fiscal Behavior of State and Local Governments …, 1997