Federal Spending and the Revolution of '94

University of Alabama, Economics, Finance and Legal Studies Working Paper No. 07-09-09

32 Pages Posted: 26 Sep 2007

See all articles by Gary A. Hoover

Gary A. Hoover

University of Oklahoma

Paul Pecorino

University of Alabama - Department of Economics, Finance and Legal Studies

Date Written: September 2007

Abstract

With the election of 1994, the Republican party gained control of both houses of the U.S. Congress for the first time since 1954. In this paper, we analyze whether this change in party control had significant effects on the determinants of federal spending at the state level. To perform this analysis, we utilize panel data on federal spending, at the state level, over the years 1983-2004. We allow for a break in the sample to analyze whether the political determinants of state level spending differed after the election of 1994. There is little evidence that a presence in the house or senate majority yields positive spending effects prior to the election of 1994, but a positive spending effect does emerge after the Republican takeover. Surprisingly, there is evidence that spending became more redistributive (measured at the state level) in the later period.

Keywords: Political Determinants of Federal Expenditure, Party Politics, Senate Representation

JEL Classification: H0

Suggested Citation

Hoover, Gary A. and Pecorino, Paul, Federal Spending and the Revolution of '94 (September 2007). University of Alabama, Economics, Finance and Legal Studies Working Paper No. 07-09-09, Available at SSRN: https://ssrn.com/abstract=1016768 or http://dx.doi.org/10.2139/ssrn.1016768

Gary A. Hoover

University of Oklahoma ( email )

308 Cate Center Drive
Room 170
Norman, OK 73072-2103
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HOME PAGE: http://https://sites.google.com/site/garyhoovereconomics/economics-622

Paul Pecorino (Contact Author)

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States
205-348-0379 (Phone)
205-348-0590 (Fax)

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