Abstract
This paper theorizes that the impact of ideology on the size of US state governments increases with state income. This idea is tested using state-level ideology data derived from the voting behavior of state congressional representatives. Empirically the interaction of ideology and mean income is a key determinant of state government size. At 1960s levels of income the impact of ideology is negligible. At 1997 levels of income a one standard-deviation move towards the left of the ideology spectrum increases state government size by about half a standard deviation. Estimated income elasticities differentiated by state and time are found to be increasing with ideology and diminishing with income, as predicted by the theory.
Original language | English |
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Pages (from-to) | 443-465 |
Number of pages | 23 |
Journal | Public Choice |
Volume | 156 |
Issue number | 3-4 |
DOIs | |
Publication status | Published - Sept 2013 |
Keywords
- Ideology
- Size of government
- Wagner's law
ASJC Scopus subject areas
- Sociology and Political Science
- Economics and Econometrics