TY  - JOUR
AU  - Case,Anne C.
AU  - Hines,James R., Jr.
AU  - Rosen,Harvey S.
TI  - Copycatting:  Fiscal Policies of States and Their Neighbors
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3032
PY  - 1994
Y2  - January 1994
UR  - http://www.nber.org/papers/w3032
L1  - http://www.nber.org/papers/w3032.pdf
N1  - Author contact info:
Anne Case
367 Wallace Hall
Princeton University
Princeton, NJ 08544
Tel: 609/258-2177
Fax: 609/258-5974
E-Mail: accase@princeton.edu

James R. Hines
Department of Economics
University of Michigan
343 Lorch Hall
611 Tappan Street
Ann Arbor, MI  48109-1220
Tel: 734/764-2320
Fax: 734/764-2769
E-Mail: jrhines@umich.edu

Harvey S. Rosen
Department of Economics
Fisher Hall
Princeton University
Princeton, NJ 08544-1021
Tel: 609/258-4022
Fax: 609/258-6419
E-Mail: HSR@princeton.edu
M2  - featured in NBER digest on 1989-12-01
AB  - This paper formalizes and tests the notion that state governments' expenditures depend on the spending of similarly situated states. We find that even after allowing for fixed state effects, year effects, and common random effects between neighbors, as state government's level of per capita expenditure is positively and significantly affected by the expenditure levels of its neighbors.  Ceteris paribus, a one dollar increase in a state's neighbors' expenditures increases its own expenditure by over 70 cents.
ER  -