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Interstate Spillovers, Fiscal Decentralization, and Public Spending on Medicaid Home‐ and Community‐Based Services
Author(s) -
Oyun Gerel
Publication year - 2016
Publication title -
public administration review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.721
H-Index - 139
eISSN - 1540-6210
pISSN - 0033-3352
DOI - 10.1111/puar.12639
Subject(s) - medicaid , decentralization , revenue , spillover effect , economics , public economics , panel data , ideology , autonomy , state (computer science) , econometric model , finance , macroeconomics , economic growth , political science , politics , econometrics , health care , algorithm , computer science , law , market economy
This article examines the interstate spillover effect of Medicaid expenditures for home‐ and community‐based services ( HCBS ) and tests the relationship between fiscal decentralization and public spending. Based on the theory of interstate strategic interaction, an empirical model is specified that explicitly accounts for interdependence in states’ spending decisions. The model is estimated by applying spatial econometric methods to panel data for the 50 U.S. states for 2000–2010. Findings show a positive interdependence in state HCBS expenditures that is contingent on similarity in citizen ideology between states. Fiscal decentralization, measured by transfer dependence and revenue autonomy, is positively related to Medicaid HCBS spending .