Changing the Price of Pork: The Impact of Local Cost Sharing on Legislators&Apos; Demand for Distributive Public Goods
Changing the Price of Pork: The Impact of Local Cost Sharing on Legislators&Apos; Demand for Distributive Public Goods
复制标题
改变猪肉价格:地方成本分摊对立法者的影响
DOI:
10.1016/s0047-2727(98)00071-1
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发表时间:
1998
期刊:
影响因子:
--
通讯作者:
R. Inman
中科院分区:
文献类型:
--
作者:
Alison F. Del Rossi;R. Inman
The provision of public services through national legislatures gives legislators the chance to fund locally beneficial public projects using a shared national tax base. Nationally financed and provided local (congestible) public goods will be purchased at a subsidized price below marginal cost and may be inefficiently too large as a consequence. An important assumption behind this inefficiency is that national legislators in fact demand more of the locally beneficial project as the local price for projects declines. This paper provides the first direct test of this important assumption using legislators' project choices following the passage of the Water Resources Development Act of 1986 (WRDA'86). We find legislators' chosen water project sizes do fall as the local cost share rises, with a price elasticity of demand ranging from −0.81 for flood control and shoreline protection projects to −2.55 for large navigation projects. The requirement of WRDA'86 that local taxpayers contribute a greater share to the funding of local water projects reduced overall proposed project spending in our sample by 35% and the federal outlay for proposed project spending by 48%.