Abstract
AbstractPublic spending, because it is influenced by elected officials, can be swayed by political considerations as well as socio‐economic factors. Previous studies have confirmed the importance of political measures in the allocation of general public spending as well as in spending for infrastructure and highway projects at the state level. This study examines the determinants of the allocation of state highway funds within one state—in North Carolina to counties during the period 1990–2005—and assesses the relative importance of socio‐economic and political factors in these decisions. Determinants were derived from three conceptual approaches to public spending: the median voter model, the special interest model, and the political model. Persistence was found in both highway construction spending and highway maintenance spending. In addition, employment market conditions were a strong determinant of highway construction spending, as was one political factor—the county's relative vote in the most recent election for the state's dominant political party. Highway maintenance spending was found to be dominated by median voter factors with no finding of political influence.
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