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Spring 2009

ISSN 0890-913X

Volume 24, Number 2

Categories: Politics | Spring 2009

Spatially Targeted Government Spending and Heterogeneous Constituent Cost Shares

John Charles Bradbury, Kennesaw State University

E. Frank Stephenson, Berry College

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TheJournalofPrivateEnterprise24(2),2009,75-86SpatiallyTargetedGovernmentSpendingandHeterogeneousConstituentCostSharesJohnCharlesBradbury*KennesawStateUniversityE.FrankStephensonBerryCollegeAbstractThelawof1/n(Weingast,Shepsle,andJohnsen,JournalofPoliticalEconomy,1981)positsapositiverelationshipbetweenthesizeofanelectedbodyandgovernmentspendingbecausethetaxpayersineachdistrictbearonly1/nthofthetotaltaxburden.Relyingonvariationinthenumberofseatsinelectivebodies,evidencesupportiveofthelawof1/nhasbeenfoundatalllevelsofrepresentativegovernment.Itispossible,however,thatthesefindingssufferfromendogeneitybias:Politiespreferringlargergovernmentspendingmayalsoprefertohavemoreelectedofficials.Inthispaper,weproposeanalternativetestofthelawof1/n.Inadditiontopostulatingthatlargerelectivebodieswillhavehigherlevelsofgovernmentspending,thelawof1/nalsoimpliesthat,ceterisparibus,therewillbeanegativerelationshipbetweenlocallytargetedgovernmentspendingandajurisdiction’sshareofthetaxationrequiredtofinancethespending.Wetestthispredictionbyexaminingtherelationshipbetweenspatiallytargetedgovernmentspendingandthetaxburdenacrossstates.Wefindanegativerelationshipbetweenlocaltaxcontributionstothecommontaxbaseandlocallytargetedgovernmentspendingforaggregatelocallytargetedspendingandforsixofeightsubcategories.Thesefindingsarerobusttotheinclusionofothervariablesthoughttoinfluencethedistributionofspendingonparochialprojects.JELCodes:D72,H11,H50Keywords:Lawof1/n;Representativegovernment;Publicexpenditure;Fiscalcommons*Wethanktheanonymousrefereesandparticipantsatthe2003PublicChoiceSocietymeetingsforhelpfulsuggestions.75

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Title	Spatially Targeted Government Spending and Heterogeneous Constituent Cost Shares
Authors/Creators:	John Charles Bradbury, Kennesaw State University E. Frank Stephenson, Berry College
Year:	2009
Volume:	24
Number:	2
Pages:	75 - 86
Publisher:	The Association for Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	Political science, Taxation, Public Expenditure, Democracy, Fiscal administration, Costs, Political economy

Citation:
Bradbury, John Charles; Stephenson, E. Frank / 2009. "Spatially Targeted Government Spending and Heterogeneous Constituent Cost Shares." The Journal of Private Enterprise, 24(2): 75-86.