An Analysis of State–Local Government Capital Expenditure During the 2000s

26 Pages Posted: 26 Mar 2015

See all articles by Ronald C. Fisher

Ronald C. Fisher

Michigan State University - Department of Accounting & Information Systems; Michigan State University - Department of Economics

Robert W. Wassmer

California State University, Sacramento - Department of Public Policy & Administration

Date Written: Spring 2015

Abstract

Capital expenditure by subnational governments in the United States represents about two percent of GDP and 12 percent of state–local spending. Persistent differences among states exist in the amount and composition of this capital expenditure. This regression‐based research examines for the decade of the 2000s: (1) the factors affecting capital spending and interstate differences; (2) the effect of recessions; (3) the response to American Recovery and Reinvestment Act (ARRA) stimulus funds; (4) state and year fixed effects; and (5) investment for highways and K‐12 education. Aggregate capital expenditure is relatively stable, although it increased around recessions, with ARRA grants especially important and substantial state‐specific influences.

Suggested Citation

Fisher, Ronald C. and Wassmer, Robert William, An Analysis of State–Local Government Capital Expenditure During the 2000s (Spring 2015). Public Budgeting & Finance, Vol. 35, Issue 1, pp. 3-28, 2015. Available at SSRN: https://ssrn.com/abstract=2584759 or http://dx.doi.org/10.1111/pbaf.12062

Ronald C. Fisher (Contact Author)

Michigan State University - Department of Accounting & Information Systems ( email )

270 North Business Complex
East Lansing, MI 48824-1034
United States
517-355-2326 (Phone)

Michigan State University - Department of Economics ( email )

East Lansing, MI 48824
United States
517-355-0293 (Phone)

Robert William Wassmer

California State University, Sacramento - Department of Public Policy & Administration ( email )

Sacramento, CA 95819-6081
United States
916-278-6304 (Phone)
916-278-6544 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
261
PlumX Metrics