State Government Expenditures Research Articles

State and Local Government Expenditures and Infant Mortality.

A previous study reported that increased state and local government expenditures were associated with decreased infant mortality rates (IMRs). However, reported estimates of the association between expenditures and IMR represented the degree to which the association changed each year, not the main effect. We reproduced the original results, reporting this main effect and replicated the analysis using improved methodology and updated data. For the reproduction analysis, we used methods and data identical to the original study: A publicly-posted, state-level data set of expenditures from 2000 to 2014 US Census Bureau survey data linked to 2-year lagged IMR data with a random intercept model including an interaction between time and expenditures. For the replication analysis, we added 5 years of data and adjusted for fixed state differences and inflation. In the reproduction, the main effects of total, environmental, and educational expenditures on IMR were much larger than the interaction effects previously reported as the main effects. For example, a 1-SD increase in per-capita total expenditures was associated with a reduction of 0.35 infant deaths per 1000 live births instead of 0.02 deaths per 1000 live births originally reported. In the updated replication, the main effects were generally even larger (eg, -0.51 deaths per 1000 per SD increase in total expenditures). Increased total expenditures were associated with absolute but not relative reductions in Black-white IMR gaps. State and local government expenditures are associated with greater reductions in IMR than previously reported, underscoring the importance of continued public investment.

State Social Expenditures and Preterm Birth and Low Birth Weight in the US

Adverse birth outcomes in the US, including preterm birth and low birth weight, are strongly tied to socioeconomic disadvantage and disproportionately impact infants of Black mothers. Increasing investments in social programs represents a potential policy approach to addressing disparities in birth outcomes. To examine state-level associations of government expenditures on social programs with rates of preterm birth and low birth weight both overall and by race. This cross-sectional, ecological study was conducted among liveborn infants in the 50 US states between January 1, 2011, and December 31, 2019. Data analysis was performed from May 2022 to May 2024. Yearly state and local government expenditures per low-income person on social programs in the following categories: state refundable Earned Income Tax Credit; cash assistance; childcare assistance; housing and community development; and public health. Yearly state-level rates of preterm birth (gestational age <37 weeks) and low birth weight (<2500 g). From January 1, 2011, to December 31, 2019, there were 35.1 million live births in the US, of which 3.4 million (9.8%) were preterm and 2.8 million (8.1%) were low birth weight. Median (IQR) state social expenditures per low-income person were $1546 ($1074-$2323). Greater total state social expenditures were associated with lower overall rates of preterm birth (adjusted prevalence ratio [aPR] for every increase of $1000 per low-income person, 0.99; 95% CI, 0.97-0.999) but not with overall rates of low birth weight. In secondary analyses, greater state social expenditures were associated with lower preterm birth rates for infants of Black mothers (aPR, 0.96; 95% CI, 0.92-0.999). Greater state expenditures specifically on cash assistance (aPR, 0.64; 95% CI, 0.43-0.94) and housing and community development (aPR, 0.91; 95% CI, 0.84-0.98) were associated with lower preterm birth rates for infants of Black mothers. In this cross-sectional, ecological study, greater state-level expenditures on social programs were associated with reduced rates of preterm birth, particularly for infants of Black mothers. State and local governments may consider bolstering investments in cash assistance and housing and community development to address maternal and infant health disparities.

Actualization of Indonesian Economic and Cultural Development Reviewed from Ibn Khaldun's Thoughts

The problem of poverty in Indonesia is very complex which can trigger economic and socio-cultural problems, namely that there is a poor population of 9.36 percent. This indicates that prosperity has not been achieved in economic development in Indonesia. Ibnu Khaldun explained that a developed country is determined by the strength of the government implementing sharia and justice which is implicitly in accordance with the ideals of national development in Indonesia. The aim of this research is to analyze the actualization of Indonesia's economic development in terms of Ibnu Khaldun's thoughts. The research method used is qualitative library research sourced from secondary data using library research techniques from Muqaddimah books, journal articles and various kinds of relevant library materials which are then analyzed using descriptive analysis methods. The results of this research are that Indonesia's economic development has not yet achieved economic and socio-cultural balance as stated by Ibnu Khaldun. This is based on an imbalance between state revenues and government expenditure. The high taxes imposed on the public cannot yet be directly proportional to state spending which should be able to reduce inequality, poverty and so on, especially in underdeveloped areas.

State-Building through Public Land Disposal? An Application of Matrix Completion for Counterfactual Prediction

This article examines how homestead policies, which opened vast frontier lands for settlement, influenced the development of American frontier states. It uses a treatment propensity-weighted matrix completion model to estimate the counterfactual size of these states without homesteading. In simulation studies, the method shows lower bias and variance than other estimators, particularly in higher complexity scenarios. The empirical analysis reveals that homestead policies significantly and persistently reduced state government expenditure and revenue. These findings align with continuous difference-in-differences estimates using 1.46 million land patent records. This study’s extension of the matrix completion method to include propensity score weighting for causal effect estimation in panel data, especially in staggered treatment contexts, enhances policy evaluation by improving the precision of long-term policy impact assessments.

The Effect of Lagos State Government Expenditure on Maternal Mortality Ratio

The Effect of Lagos State Government Expenditure on Maternal Mortality Ratio

Internally Generated Revenue (IGR) and the Economic Viability of States in Nigeria

Purpose: The purpose of this study is to investigate Internally Generated Revenue (IGR) and the Economic Viability of States in Nigeria using State Government Debt Stock. Specifically, the study seeks to determine the effect of IGR on State government expenditure. Methods: Secondary data were used for this study. It used an annual panel data set spanning from 1986 to 2021 for six states each from Nigeria's six geopolitical zones. A Panel Vector Error Correction Model (PVECM) was used as the method of analysis. Results: Results showed that the IGR of States in Nigeria had a positive effect on State government expenditure. The Impulse Response Function of expenditure to shocks from IGR indicates that IGR for the periods under analysis positively affected State government expenditure, increasing their expenditure profile for the majority of the period under analysis. The result of the variance decomposition test of State government total debt stock (TDS) shows that IGR had the greatest shock on the total debt stock of State governments in the country after its own shock. The findings also revealed a mixed and varied outcome, demonstrating both a positive and negative influence of IGR on the overall debt stock of the state government. Implications: The study is expected to contribute to good economic management, such as managing the debt load at reasonable levels, as well as adequate economic planning backed by cost-effective expenditure. It will also contribute to the economic sustainability of Nigerian states. The uniqueness of this research is obvious in its ability to address the statewide problem of over-dependence on the federal government’s allocation.

Unconventional monetary policy and local fiscal policy

Following the onset of the pandemic, the Federal Reserve employed an unconventional monetary policy that directly intervened in municipal bond markets. We characterize the fiscal and macroeconomic implications of such central bank actions in a New Keynesian model of a monetary union. We assume that state and local governments are subject to a loan-in-advance constraint, reflecting that with lumpy cash flows, they often finance a fraction of expenditures by issuing short-term bonds. The municipal debt is held by financial intermediaries, who also supply credit to the private sector. Direct central bank purchases can transmit to the economy through two main channels: (1) by alleviating cash flow problems of the regional governments and (2) by accelerating lending to the private sector if credit constraints ease more broadly. By quantifying the relative importance of these channels, we highlight that the central bank’s actions lead to sizable increases in private investment but have more muted effects on state and local government expenditures. In addition, we also show the transmission of direct federal government aid through intergovernmental transfers is markedly different from unconventional policy.

Fiscal Impacts of the Opioid Crisis on State and Local Governments

Adverse effects of the opioid crisis on individuals influence the need for state and local government expenditures and erode their tax bases. Systematic estimates of the magnitude of such fiscal impacts are lacking. We estimate the magnitude of the effect of the opioid crisis on state and local expenditures and discuss approaches that might be taken to evaluate the impact of the crisis on revenues. We find that the fiscal impacts of the opioid crisis on state and local governments are modest for the U.S. as a whole but are likely to be greater in states with particularly high rates of opioid-use disorders. Our analysis aims to encourage and guide more in-depth studies in the future. Such studies can inform intergovernmental aid policies designed to offset the fiscal impacts of opioid misuse and can also contribute to assessing damages in opioid lawsuits.

An Analysis of Growth and Pattern of Revenue and Expenditure in the State of Uttarakhand

Abstract: The focus of the paper is to examine trends and growth in state government revenue and expenditures in Uttarakhand. In order to perform its functions i.e. social, economic and general government needs funds that have to be garnered from a variety of sources. Revenue and Expenditure plays a very significant role to achieve the major economic goals of growth, stability, equity and efficiency. The revenue and capital receipts, revenue and capital expenditure of the state determine their ability to deliver services. Weaknesses in revenue and expenditure management could constrain the ability of a state to contribute to poverty reduction and economic development. The importance of public revenue has greatly increased during recent times. This paper reviews key trends in public spending and revenue during this period. The result indicates that the revenue and expenditure of the state government increases from 17% to 23% during study period.

Designing Transfers Policy With Normatively Determined Revenues And Expenditures Of State Governments In India

&#x0D; This study addresses an important policy issue of designing equalisation transfers from the union government of India to the states. It empirically measures the own revenue efficiency and potential of General Category and Special Category States using the frontier approach for panel data. It also analyses the effect of transfers on states’ own revenue and its components. Results indicate a strong crowding-out effect of transfers in General Category States and a strong crowding-in effect in Special Category States. Amounts of additional transfers required to provide equal level of public services for all 29 States in four alternative scenarios range between ₹1072 billion and ₹15,948 billion. The range is based on alternate benchmarks of fiscal capacities and expenditure needs. We hope that these results will be useful to policymakers and other stakeholders to design appropriate fiscal transfer strategies such that all citizens can avail a standard level of public services in India.&#x0D;

IMPACT OF FISCAL DISCIPLINE ON PLATEAU STATE GOVERNMENT EXPENDITURE

The main objective of the public sector as part of the macro-economy is the provision of necessary government services to the public in order to achieve macro-economic stabilisation. Fiscal discipline is the application of fiscal rules to achieve deficit reduction and long-term fiscal consolidation. The aim of the study was to examine the impact of fiscal discipline on Plateau state government expenditure and to determine, given the existence of fiscal discipline, if a significant relationship exists between state government expenditure and the following demographic and economic variables: disposable income, population density, inter-governmental revenue, retirement benefit expenditure, and capital expenditure. State government expenditure, if properly deployed, should lead to expansion of public goods and services and the attainment of economic growth and development. The study made use of secondary data which were collected from Plateau State Ministry of Finance and the National Population Commission Jos. The data were analysed using the linear ordinary least square regression analysis. The result shows that state government expenditure has a significant positive relationship with disposable income, intergovernmental revenue and retirement benefit expenditure, a significant negative relationship with population density and capital expenditure. It was concluded that (i) state government expenditure is not geared towards the expansion of public goods and services that will enhance growth and development (ii) economies of scale in the production and provision of government services is yet to be attained and (iii) state government expenditure is incurred in order to implement possible fiscal discipline mechanisms of balanced-budget or deficit reduction. The study recommends that fiscal discipline mechanisms should be implemented only to the extent that the decision does not constrain expenditure on public goods and services that may result in growth and development

Effectiveness of fiscal federalism for poverty reduction in Nigeria: an analysis of federal and state governments’ expenditures

One of the sustained political and economic strategies that have been adopted by various countries over 3 decades to achieve the desired level of development is fiscal federalism. Through this economic development strategy, various levels of government within an economy have been involved in the pursuit of reducing poverty overtime. The purpose of this study is to examine the relationship between government expenditure on poverty reduction with respect to federal and state government expenditures, respectively. The study employed the auto-regressive distributed lag (ARDL) estimation technique to establish long-run relationship, and to examine the magnitude of the effect of federal and state government expenditures in both the short-run and long-run periods using time-series data for the period 1981–2018. Results obtained indicate that only state government expenditure has positive effect on poverty reduction in Nigeria. The findings of this study, therefore, support the need for greater decentralization and increase in fiscal expenditure responsibilities and strengthening revenue capability in favor of state governments, giving that achieving desired poverty reduction could be achieved through increased state government spending on developmental projects.

Fiscal Decentralization and Macroeconomic Outcomes in Nigeria

This study examined the fiscal decentralization-economic growth nexus in Nigeria, with the objective of establishing the causal relationship between measures of fiscal decentralization and economic growth covering the period 1981-2019. Employing the autoregressive distributed lag (ARDL) technique of econometrics, the analyses revealed that fiscal decentralization variables employed in the study vis-a-vis federal government, state government and local government expenditures have a positive and significant impact on economic growth in Nigeria except for local government expenditure which was not significant at any level. This behaviour is adduced to be a function of poor governance, corruption and other underlying structural challenges at that level. Also, it was observed that while real GDP has a positive and significant impact on private consumption expenditure, its impact on unemployment was not significant at any level. The study therefore concludes that the nature and pattern of growth in Nigeria has not been inclusive. Consequently, it is recommended that fiscal relations governing the different tiers of government be reviewed to meet existing realities while coordinated fiscal policy measures and improved governance will enhance growth and the fiscal space in the country.

Mortality versus Municipal and State Government Spending in American Cities.

The USA leads the world in healthcare spending but trails dozens of countries in life expectancy. Government spending may reduce overall mortality by redistributing resources from the rich to the poor. We linked mortality data from 2006 to 2015 to municipal and state government spending in 149 of the largest American cities. We modeled the association of mortality with city and state government spending per capita in 2005 using weighted linear regression. A 10% increase in state government expenditures was associated (P = 0.008) with a 1.4% (95%CI: 0.4-2.4%) reduction in mortality in American cities. Total city government expenditures were not associated with mortality (P > 0.10). However, among Whites, increases in city government spending were associated with a reduction in mortality of 4.8% (2.1-7.5%), but among Blacks and Asians, increased city government spending was associated with respective mortality increases of 1.7% (0.6-2.9%) and 5.1% (2.1-6.2%). State government spending is associated with reduced mortality in American cities. City government spending appears to benefit White longevity and hurt non-White longevity.

State expenditures and inequality in the U.S

ABSTRACT This paper investigates whether the expenditure ratio (measured as total spending divided by total revenues) of a state in the U.S. is correlated with the inequality level of that state. Although the federal government spends on both welfare and non-welfare programs, state government expenditures mostly go to welfare programs. As a result, a given state with a greater expenditure ratio should have a lower level of inequality compared to the inequality levels of other states. Also, should a state’s expenditure ratio for a given year increase compared to those for other years, the state should have a lower level of inequality. An empirical test of this hypothesized association employs the data of fifty states covering the years 1980 to 2014. We find a strong negative impact of a given state’s expenditure ratio on its inequality level (measured by the Gini coefficient). In a random effects model, a one standard deviation increase in state expenditures ratio would result in approximately .15% less inequality.

Fiscal policy and oil factor: Evaluation of the effects in global economic development

Research background:Today, the acceptance of fiscal policy decisions necessitates the analysis of policy efficiency with the help of optimization issues, the study of cause-and-effect relationships between budget expenditures and macroeconomic indicators such as economic growth, revenues, and the evaluation of a number of econometric models among all. The need for these areas makes it important to study and analyze the effects of fiscal policy on the economy, which allows to justify the relevance of the topic of the article.Purpose of the article:The article is devoted to the assessment of the fiscal and economic consequences of changes in oil prices in the world market, as well as the study of the relationship between state budget revenues and government expenditure in Azerbaijan. It was revealed that a 1% increase in oil prices, in the long run, increased Azerbaijan’s GDP by 0.52% and state budget expenditures by 0.88%. The calculations allow to conclude that there is a high correlation between government spending and state budget revenues in Azerbaijan. The obtained result indicates a positive relationship between the aforementioned economic variables.Methods:The most common method of analyzing the possible causal relationship between macroeconomic indicators is the causality test proposed by Granger in 1969. However, from a methodological point of view, the application of this test to study the causal relationship between economic indicators requires these indicators to be stationary. This statistical feature can be violated in the case of the economic indicator having the single root elements. To do this, we tested the Unit root problem of the variable using the Augmented Dickey-Fuller test. Simultaneously, a number of other important features of the evaluated models were tested and the adequacy of the models was confirmed.Findings &amp; Value added: As a result of the research, it was determined that there is a short-term and long-term causal relationship between world oil prices and Azerbaijan’s GDP and state budget expenditures. According to the results, a 1 percent increase in oil prices leads to the increase of the current level of GDP growth in Azerbaijan by 0.20 percent in the short term, and by 0.52 percent in the long term. Parallelly, it was revealed that a 1 percent increase in world oil prices leads to a 0.88 percent increase in Azerbaijan’s state budget expenditures in the long run. The correlation between Azerbaijan’s government expenditures and state budget revenues was analyzed, and a high correlation between these two macroeconomic indicators was identified.

Expenditure on sports and leisure by the Government of the State of Piauí

The present study aimed to analyze the participation of the government of Piauí in the bottom-up funding of sport and leisure public policies from 2013 to 2017, embracing four aspects: (1) comparison of expenditure with tax revenue; (2) comparison of expenditure with other social agendas, notably Social Assistance and Culture; (3) identifying the spending behavior regarding subfunctions; (4) analyzing the efficiency in resource liquidation comparatively. Quantitative data were collected from the National Treasure website and submitted to descriptive statistics. In a conclusive manner, the study indicated that: (a) state government expenditure with the SLF is far shorter than the estimated by the II National Sport Conference; (b) expenditure has not followed the positive revenue variation during the period; (c) when compared to Social Assistance and Culture, Sport and Leisure has been the less considered area on the government’s agenda; (d) there has been an abrupt chance in the government’s agenda towards performance sport; (e) the government acts in an efficient way regarding the liquidation of planned resources.

Valuing Infant Health in the United States.

In this issue of Pediatrics , Goldstein et al1 present new findings on state and local government expenditures and infant mortality in the United States. How much a society and/or individuals are willing to pay for something reflects its importance and monetizes its value.2 Nevertheless, investing wisely (eg, assessing the “return on investment” and domains of investing in medicine versus health) has been and continues to be challenging. Infant mortality statistics, like all vital statistics, are concerned with real people. They describe events and provide information about characteristics related to individuals entering or leaving life or changing their civil status.3 It is important to go behind those numbers and remember that each one represents a significant moment in life. The first recorded “vital statistics concerned with people” indicated that, in 1915, for every 1000 live births, ∼100 infants died before their first birthday.3–7 In 2018, the US infant mortality rate declined to 5.67 deaths per 1000 live births, making that year’s infant mortality rate the lowest reported in … Address correspondence to Michele Kiely, DrPH, Graduate School of Public Health and Health Policy, The City University of New York, 55 W 125th St, Room 714, New York, NY 10027. E-mail: michele.kiely{at}sph.cuny.edu

State and Local Government Expenditures and Infant Mortality in the United States.

Evidence suggests that government expenditures on non-health care services can reduce infant mortality, but it is unclear what types of spending have the greatest impact among groups at highest risk. Thus, we sought to quantify how US state government spending on various services impacted infant mortality rates (IMRs) over time and whether spending differentially reduced mortality in some subpopulations. A longitudinal, repeated-measures study of US state-level infant mortality and state and local government spending for the years 2000-2016, the most recent data available. Expenditures included spending on education, social services, and environment and housing. Using generalized linear regression models, we assessed how changes in spending impacted infant mortality over time, overall and stratified by race and ethnicity and maternal age group. State and local governments spend, on average, $9 per person. A $0.30 per-person increase in environmental spending was associated with a decrease of 0.03 deaths per 1000 live births, and a $0.73 per-person increase in social services spending was associated with a decrease of 0.02 deaths per 1000 live births. Infants born to mothers aged <20 years had the single greatest benefit from an increase in expenditures compared with all other groups. Increased expenditures in public health, housing, parks and recreation, and solid waste management were associated with the greatest reduction in overall IMR. Investment in non-health care services was associated with lower IMRs among certain high-risk populations. Continued investments into improved social and environmental services hold promise for further reducing IMR disparities.

Fiscal Decentralization and Natural Disaster Mitigation: Evidence from the United States

How decentralized government structure influences public service delivery has been a major focus of debate in the public finance literature. In this paper, we empirically examine the effect of fiscal decentralization on natural disaster damages across the U.S. states. We construct a unique measure of decentralization using state and local government expenditures on natural resources, which include investment in flood control and mitigation measures, among others. Using state‐level panel data from 1982 to 2011, we find that states that are more decentralized in natural resource expenditures have experienced more economic losses from floods and storms. This effect is only pronounced in states that are at higher risks of flooding. Our findings suggest that fiscal decentralization may lead to inefficient protection against natural disasters and provide implications for the assignment of disaster management responsibilities across different levels of government in the U.S. federal system.