An Analysis of State–Local Government Capital Expenditure During the 2000s. (March 2015)

• Record Type: Journal Article
• Authors: Fisher, Ronald C.; Wassmer, Robert W.
• Is Part Of: Public budgeting & finance. Volume 35:Number 1(2015:Spring)
• Page Start: 3
• Page End: 28
• Publication Date: 2015-03
• Subjects: Budget -- United States -- Periodicals; Budget -- Periodicals; 352.4
• DOI: 10.1111/pbaf.12062
• Languages: English
• ISSNs: 0275-1100

Abstract

Abstract : Capital expenditure by subnational governments in the United States represents about two percent of GDP and 12 percent of state–local spending. Persistent differences among states exist in the amount and composition of this capital expenditure. This regression‐based research examines for the decade of the 2000s: (1) the factors affecting capital spending and interstate differences; (2) the effect of recessions; (3) the response to American Recovery and Reinvestment Act (ARRA) stimulus funds; (4) state and year fixed effects; and (5) investment for highways and K‐12 education. Aggregate capital expenditure is relatively stable, although it increased around recessions, with ARRA grants especially important and substantial state‐specific influences.