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How States Prioritize Spending: From Targeted Benefits to Public Goods

A new, general measure summarizes how American states allocate spending across policy areas by modeling yearly program expenditures with a spatial proximity approach.

📊 How the Measure Was Built

  • Uses a spatial proximity model applied to yearly state program spending data across all major program areas.
  • Produces a single continuous variable and a yearly score for each state that summarizes that state's spending profile.

🔍 What the Measure Reveals

  • Empirical analysis shows state spending patterns fall on a clear, easily interpretable unidimensional continuum.
  • That continuum distinguishes policies that deliver particularized benefits to needy constituencies from those that provide broader collective goods.

✅ Why the Measure Is Trustworthy

  • The constructed variable meets standard evaluative criteria for measurement and exhibits desirable statistical properties.
  • When compared to existing indicators of state policy activity, it performs favorably on validity and reliability.

📌 Practical Output and Uses

  • Outputs a yearly score for each state, enabling comparison of spending priorities across time and across states.
  • Can be interpreted as a valid and reliable representational measure of state policy priorities and incorporated into broader models of state politics.
Political Analysis
A New Measure of Policy Spending Priorities in the American States was authored by William G. Jacoby and Saundra K. Schneider. It was published in Pol. An. in 2009. Find on Google Scholar10.1093/pan/mpn009
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