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What Determines the Allocation of Government Resources to Local Areas?

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Jensen-jejensen-SM15MR-Sloan-2021-thesis.pdf

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Author(s)
Jensen, Jonathan E.
Advisor(s)
Palmer, Christopher
Date Issued
June 2021
Publisher
Massachusetts Institute of Technology
Abstract
I study the allocation of resources by state governments to individual counties in the United States. I test competing hypothesis that government resources are allocated to advance political motives, equitable redistribution, or output efficiency. Contrary to previous studies on federal spending, I find that political motives play almost no role in the state allocation of resources. I also find suggestive evidence that efficiency outweighs equity.
MIT Department
Sloan School of Management
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