scholarly journals Government Spending Shocks and the Multiplier: New Evidence from the U.S. Based on Natural Disasters

2012 ◽  
Author(s):  
Weonho Yang ◽  
Jan Fidrmuc ◽  
Sugata Ghosh
Keyword(s):  
Natural Disasters ◽  
Government Spending ◽  
Spending Shocks ◽  
New Evidence ◽  
The U.S

Political Arithmetic: New Evidence on the ‘Small-State Bias’ in Federal Spending

2011 ◽  
Vol 29 (1) ◽  
pp. 55-75 ◽  
Author(s):  
Michelle B. Matthews ◽  
William F. Shughart ◽  
Taylor P. Stevenson
Keyword(s):  
Panel Data ◽  
Data Model ◽  
Government Spending ◽  
Panel Data Model ◽  
Federal Spending ◽  
Small State ◽  
Federal Funds ◽  
Time Period ◽  
New Evidence ◽  
The U.S

Abstract This paper revisits the literature identifying a small-state bias in federal spending, according to which the distribution of federal funds favors the less populous states because they are ‘overrepresented’ in the U.S. Senate. Estimating a panel data model of die determinants of government spending per million capita across the 50 states over a longer time period [1972- 2000] than studied hitherto, and controlling for heterogeneity in the memberships of the House and Senate by including the tenures of die states’ congressional delegations, we report evidence supporting the existence of a bias toward states that are overrepresented in both chambers. Our key finding, however, is that the small-state bias is sensitive to the time period considered.

scholarly journals Redistribution Preferences, Inequality Information, and Partisan Motivated Reasoning in the United States

Societies ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 65
Author(s):  
Clem Brooks ◽  
Elijah Harter
Keyword(s):  
Party Identification ◽  
Motivated Reasoning ◽  
The United States ◽  
Quality Data ◽  
Historical Time ◽  
High Quality Data ◽  
Redistributive Policies ◽  
Election Studies ◽  
New Evidence ◽  
The U.S

In an era of rising inequality, the U.S. public’s relatively modest support for redistributive policies has been a puzzle for scholars. Deepening the paradox is recent evidence that presenting information about inequality increases subjects’ support for redistributive policies by only a small amount. What explains inequality information’s limited effects? We extend partisan motivated reasoning scholarship to investigate whether political party identification confounds individuals’ processing of inequality information. Our study considers a much larger number of redistribution preference measures (12) than past scholarship. We offer a second novelty by bringing the dimension of historical time into hypothesis testing. Analyzing high-quality data from four American National Election Studies surveys, we find new evidence that partisanship confounds the interrelationship of inequality information and redistribution preferences. Further, our analyses find the effects of partisanship on redistribution preferences grew in magnitude from 2004 through 2016. We discuss implications for scholarship on information, motivated reasoning, and attitudes towards redistribution.

Government spending shocks and economic growth: additional evidence from cyclical behavior of fiscal policy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olumide Olusegun Olaoye ◽  
Ukafor Ukafor Okorie ◽  
Oluwatosin Odunayo Eluwole ◽  
Mahmood Butt Fawwad
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Government Spending ◽  
Generalized Method Of Moments ◽  
The State ◽  
Fiscal Policies ◽  
Asymmetric Effect ◽  
Content Type ◽  
Spending Shocks ◽  
The Business Cycle

PurposeThis study examines the asymmetric effect of government spending on economic growth in Nigeria over the period 1980–2017. Specifically, this study investigates whether the response of economic growth to government spending shocks differs according to the nature of shocks on them. In addition, the authors examine whether the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Design/methodology/approachThe study adopts the linear fiscal reaction function in addition to the nonlinear regression model of Hatemi-J (2011, 2012), Granger and Yoon (2002), which allows us to separate negative shocks from positive shocks to government spending. Similarly, the authors adopt the generalized method of moments (GMM) techniques of Hansen (1982) to account for simultaneity and endogeneity problems inherent in dynamic model.FindingsThe authors’ findings reveal that there is evidence of asymmetry in the government spending–economic growth nexus in Nigeria over the period of study. Specifically, the authors find that the response of economic growth to government spending shocks differs according to the nature of shocks on them. More specifically, the study established that the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Originality/valueUnlike the traditional method of modeling asymmetry, which adopts the simple inclusion of a squared government spending term or by the inclusion of a cubic government spending term, the model adopted in this study allows us to model shocks and show how the responses of economic growth to government expenditure differ according to the nature of shocks on them.

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