Monday, September 21, 2009

Small State Bias

Here's a new paper concerning the small state bias, from the abstract:

Most of the estimated impact is not a scale but a change effect. Rather than evidence of ”small state advantage", we find that states with fast growing population are penalized in the allocation of the federal budget independently of whether they are large or small.

The time frame they look at is from 1978-2002. Bill Shughart has done work in this area as well, this comes immediately to mind. I particularly like that Shughart, et al., paper because it looks at different time frames and isolates when we may be seeing a small state bias and when we can likely eliminate the existence of such a bias. Namely, there may be evidence in the 1970s, but not afterwards. In light of this result, the above paper seems to be driving home a similar point.

No comments: