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Corruption and the Composition of Public Spending in the United States

36 Pages Posted: 14 Feb 2012 Last revised: 2 Sep 2013

Adriana S. Cordis

Winthrop University - College of Business Administration

Multiple version iconThere are 2 versions of this paper

Date Written: August 2013

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.

Keywords: Corruption, Government Spending

JEL Classification: O40, H5, D7

Suggested Citation

Cordis, Adriana S., Corruption and the Composition of Public Spending in the United States (August 2013). Available at SSRN: https://ssrn.com/abstract=2003893 or http://dx.doi.org/10.2139/ssrn.2003893

Adriana S. Cordis (Contact Author)

Winthrop University - College of Business Administration ( email )

Rock Hill, SC 29733-0001
United States

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