Corruption and the Composition of Public Spending in the United States
36 Pages Posted: 14 Feb 2012 Last revised: 2 Sep 2013
Date Written: August 2013
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: Suggested Citation