Author Type

Graduate Student

Date of Award

1998

Document Type

Thesis

Publication Status

Version of Record

Submission Date

October 2026

Thesis/Dissertation Advisor [Chair]

Thai, Khi V.

Abstract

Oakland (1994) defined fiscal disparities as "differences in fiscal effort required to achieve a particular fiscal outcome" (p. 199). Fiscal disparities among states create inequity, because the welfare of citizens across the nation is substantially affected by where they live. Since no systematic study about interstate fiscal disparities has been conducted, this dissertation attempts to fill this gap by examining (1) the trends of interstate fiscal disparities in the period of 1970 to 1992 and (2) the determinants of interstate fiscal disparities. The model used in this dissertation is developed after a thorough examination of the literature on fiscal disparities. The dependent variable is interstate fiscal disparity as measured by the difference between a state's general expenditure per capita and the mean general expenditure per capita of the fifty states, and by the standard deviation of the general expenditures per capita of the fifty states. Two groups of independent variables are identified from the literature: state fiscal capacity variables (state personal income per capita, state own-source revenue per capita, and federal grant-in-aid per capita) and environmental cost variables (percentage of state dependent population, percentage of state population living in metropolitan areas, percentage of state population living below the poverty line, and percentage of state population enrolled in public schools). Hypotheses that correspond to the model are tested using cross-sectional regression analyses and a time series analysis. There are three related findings about the trends of interstate fiscal disparities. First, interstate fiscal disparities increased over the period of 1970-1992. Second, interstate fiscal disparities increased in a faster pace during 1980-1992 than during 1970-1979. Third, interstate fiscal disparities increased to a much larger degree in public welfare, hospitals and health than in other state functions. There are two major findings about the determinants of interstate fiscal disparities. Both cross-sectional analyses and time series analysis found state own-source revenue per capita, federal grants-in-aid to state per capita, and previous year's state general expenditure per capita to be statistically related to interstate fiscal disparities. Time series analysis also found that the percentage of state population living in metropolitan areas, the percentage of state population living under the poverty line, and the percentage of state population enrolled in public schools are statistically significantly related to interstate fiscal disparities. The dissertation concludes with policy recommendations that can be used to address interstate fiscal disparities.

Extent

222 p.

Comments

College for Design and Social Inquiry|Thesis (Ph.D.)--Florida Atlantic University, 1998.|College for Design and Social Inquiry

Identifier

FADT12554

Format

pdf

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