Why Do Small States Receive More Federal Money? U.S. Senate Representation and the Allocation of Federal Budget

• DOI: 10.1111/ecpo.12012
• Publication Date: 2013-06-03T11:46:52Z
• Authors: Valentino Larcinese; Leonzio Rizzo; Cecilia Testa
• Keywords: Federal budget; Limiting; Representation

Empirical research on the geographic distribution of U.S. federal spending shows that small states receive disproportionately more dollars per capita. This evidence, often regarded as consequence Senate malapportionment, in reality conflates effects state population size with growth. Analyzing outlays for period 1978–2002, this study properly controlling dynamics provides reasonable estimates small‐state advantage and solves a number puzzling peculiarities previous research. We also show fast‐growing loose to slow‐growing ones independently whether they are large or small. The two vary substantially across programs. Small enjoy some defense spending, whereas penalized allocation grants, particularly those administered by formulas limiting budgetary adjustments. Hence, part inverse relationship between appears be driven mechanisms inertia, which compatible incrementalist theories budget allocation.