Working Paper: NBER ID: w15224
Authors: David Albouy
Abstract: In a two-party legislature, districts represented by the majority may receive greater funds if majority-party legislators have greater proposal power or disproportionately form coalitions with each other. Funding types received by districts may depend on their legislators' party-identity when party preferences differ. Estimates from the United States - using fixed-effect and regression-discontinuity designs - indicate that states represented by members of Congress in the majority receive greater federal grants, especially in transportation, and defense spending. States represented by Republicans receive more for defense and transportation than those represented by Democrats; the latter receive more spending for education and urban development.
Keywords: partisan representation; federal funds; legislative bargaining
JEL Codes: H5; H77
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| majority-party legislators (D72) | federal grants (H77) |
| majority-party legislators (D72) | transportation grants (L91) |
| Republican representatives (D72) | defense funding (H56) |
| Republican representatives (D72) | transportation funding (R42) |
| Democratic representatives (D72) | education funding (I22) |
| Democratic representatives (D72) | urban development funding (R38) |