Corruption and the Composition of Public Spending in the United States

Cordis, Adriana

doi:10.2139/ssrn.2003893

Abstract

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Corruption and the Composition of Public Spending in the United States

Adriana S. Cordis

University of South Carolina Upstate - Johnson College of Business and Economics

July 10, 2012

Abstract:
This paper investigates the relation between public corruption and the composition of state government expenditures in the United States. The results suggest that the United States is not immune to the adverse effects of corruption that have been documented using country-level expenditure data. In particular, I find that corruption reduces the share of spending devoted to higher education, and increases the share of spending devoted to natural resources and other & unallocable budget items. These findings are robust to the use of political variables to instrument for corruption.

Number of Pages in PDF File: 36

Keywords: Corruption, Government Spending

JEL Classification: O40, H5, D7

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Date posted: February 14, 2012 ; Last revised: September 22, 2012

Suggested Citation

Cordis, Adriana S., Corruption and the Composition of Public Spending in the United States (July 10, 2012). Available at SSRN: http://ssrn.com/abstract=2003893 or http://dx.doi.org/10.2139/ssrn.2003893

Contact Information

Adriana S. Cordis (Contact Author)

University of South Carolina Upstate - Johnson College of Business and Economics ( email )

160 East St. John Street
Spartanburg, SC 29306
United States