Efficiency considerations and the allocation of new deal funds: an examination of the public goods explanation of expenditure patterns

The uneven state-level distribution of New Deal spending has been frequently studied and a variety of economic and political models have been developed. In their article, “Does the Distribution of New Deal Spending Reflect an Optimal Provision of Public Goods?,†(Economics Bulletin, Vol. 8, No. 3, 2007. pp 1-5) Bateman and Taylor propose that much of the disparity in state-level New Deal expenditures can be explained if the creation of public goods and the spillover effects are included in economic models. Using the available wealth of data on New Deal programs, expenditures by agencies within the New Deal are examined and correlation statistics provided to test this hypothesis against the 1930 US census population density figures.New Deal, public good, spillover effects, Public Works Administration, PWA, Civil Works Administration, CWA

New Deal Agricultural Appropriations: A Political Influence

This study investigates the allocation of New Deal appropriations to agricultural interests in Alabama's sixty-seven counties during the Great Depression. Conventional wisdom indicates that Roosevelt, through the New Deal, brought assistance to those in need. However, recent literature has identified a political motivation to the pattern of spending that emerged during the economic downturn. The authors develop and estimate a model with data which has only recently become available. The results show that while communities with the highest farm income received larger appropriations as expected, counties that experienced a collapse in farm income during the Great Depression received no special consideration from those officials responsible for distributing New Deal dollars across the state. These results indicate that self-interest was an important motivator in allocating agricultural appropriations in the state of Alabama during the Great Depression.Depression

Crime, Gun Control, and the BATF: The Political Economy of Law Enforcement

The Bureau of Alcohol, Tobacco and Firearms ( BATF ), an agency of the United States Treasury Department, has wide-ranging law enforcement responsibilities, which include the investigation of crimes involving guns, explosives, and illicit drugs. Its execution of these duties has been the subject of considerable controversy. This Study reports evidence that the law enforcement activities of the BAFT are influenced by both public-spirited and bureaucratic motives. The evidence presented in this Study contributes to a rethinking of the public-interest paradigm