Journal Article10.1111/ECIN.12393
Party affiliation and public spending: evidence from u.s. governors
62
TL;DR: This paper investigated whether the party affiliation of governors (Democrat or Republican) has an impact on the allocation of state expenditures and found that Democratic governors allocate a larger share of their budget to health/hospitals and education sectors.
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Abstract: This paper investigates whether the party affiliation of governors (Democrat or Republican) has an impact on the allocation of state expenditures. Exploiting gubernatorial election results from 1960 to 2012 and a Regression Discontinuity Design (RDD), we find that Democratic governors allocate a larger share of their budget to health/hospitals and education sectors. We find no significant impact of the political party of governors on total spending, only on the allocation of funds. The results are robust to a wide range of controls and model specifications. (JEL D72, H75, H72).
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