This paper investigates whether the party affiliation of governors (Democrat or Republican) has an impact on the allocation of state expenditures. Exploiting gubernatorial election results from 1960 to 2012 and a Regression Discontinuity Design (RDD), we find that Democratic governors allocate a larger share of their budget to health/hospitals and education sectors. We find no significant impact of the political party of governors on total spending, only on the allocation of funds. The results are robust to a wide range of controls and model specifications. (JEL D72, H75, H72).

doi.org/10.1111/ecin.12393
Economic Inquiry

Beland, L.-P., & Oloomi, S. (Sara). (2017). PARTY AFFILIATION AND PUBLIC SPENDING: EVIDENCE FROM U.S. GOVERNORS. Economic Inquiry, 55(2), 982–995. doi:10.1111/ecin.12393