Do Small States Get More Federal Monies? Myth and Reality about the US Senate Malapportionment
London School of Economics & Political Science (LSE)
University of Ferrara - Faculty of Economics
University of London, Royal Holloway College - Department of Economics
LSE STICERD Research Paper No. EOPP007
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.
Number of Pages in PDF File: 31
JEL Classification: D72, H61, H77working papers series
Date posted: February 3, 2010
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.532 seconds