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Efficiency considerations and the allocation of new deal funds: an examination of the public goods explanation of expenditure patterns

Author

Listed:
  • Jim F. Couch

    (University of North Alabama)

  • David L. Black

    (University of North Alabama)

  • Philip A. Burton

    (The University of North Alabama)

Abstract

The uneven state-level distribution of New Deal spending has been frequently studied and a variety of economic and political models have been developed. In their article, “Does the Distribution of New Deal Spending Reflect an Optimal Provision of Public Goods?,” (Economics Bulletin, Vol. 8, No. 3, 2007. pp 1-5) Bateman and Taylor propose that much of the disparity in state-level New Deal expenditures can be explained if the creation of public goods and the spillover effects are included in economic models. Using the available wealth of data on New Deal programs, expenditures by agencies within the New Deal are examined and correlation statistics provided to test this hypothesis against the 1930 US census population density figures.

Suggested Citation

  • Jim F. Couch & David L. Black & Philip A. Burton, 2009. "Efficiency considerations and the allocation of new deal funds: an examination of the public goods explanation of expenditure patterns," Economics Bulletin, AccessEcon, vol. 29(4), pages 3126-3133.
    • Handle: RePEc:ebl:ecbull:eb-09-00592
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    References listed on IDEAS

    as
    1. Marilyn Young & Michael Reksulak & William F. Shughart, 2001. "The Political Economy of the IRS," Economics and Politics, Wiley Blackwell, vol. 13(2), pages 201-220, July.
    2. Jim F. Couch & William F. Shughart III, 1998. "The Political Economy of the New Deal," Books, Edward Elgar Publishing, number 1561.
    3. Whatley, Warren C., 1983. "Labor for the Picking: the New Deal in the South," The Journal of Economic History, Cambridge University Press, vol. 43(4), pages 905-929, December.
    4. Jason Taylor & Fred Bateman, 2007. "Does the distribution of New Deal spending reflect an optimal provision of public goods?," Economics Bulletin, AccessEcon, vol. 8(3), pages 1-5.
    5. repec:ebl:ecbull:v:8:y:2007:i:3:p:1-5 is not listed on IDEAS
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    More about this item

    Keywords

    New Deal; public good; spillover effects; Public Works Administration; PWA; Civil Works Administration; CWA;
    All these keywords.

    JEL classification:

    • B0 - Schools of Economic Thought and Methodology - - General
    • B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925

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