We examine the flow of federal grants-in-aid from the U.S. Environmental Protection Agency (EPA) to the states. We simultaneously model two dependent variables (the flow of EPA funds, and state environmental and natural resource budgets) to identify the independent roles of state political institutions, political preferences, economic and…

The No Child Left Behind (NCLB) Act compelled states to design school accountability systems based on annual student assessments. The effect of this federal legislation on the distribution of student achievement is a highly controversial but centrally important question. This study presents evidence on whether NCLB has influenced student…

The first thing many learn about international poverty measurement is that European nations apply a "relative" poverty threshold and that they also do a better job of reducing poverty. Unlike the European model, the "absolute" U.S. poverty threshold does not increase in real value when the nation's standard of living rises,…

We study how the employment effects of enterprise zones vary with their location, implementation, and administration, based on evidence from California. We use new establishment-level data and geographic mapping methods, coupled with a survey of enterprise zone administrators. Overall, the evidence indicates that enterprise zones do not increase…

This paper offers unique rankings of the extent to which fiscal structures of U.S. states contribute to economic growth. The rankings are novel in two key respects: They are well grounded in established growth theory, in which the effect of taxes depends both on the level of taxes and on the composition of expenditures; and they are derived from…

Previous studies find large cross-national differences in inequality amongst rich Western nations, due in large part to differences in the generosity of welfare state transfers. The United States is the least generous nation and the one having the most after-tax and transfer inequality. But these analyses are limited to the effects of cash and…

This paper compares the incentives inherent in TANF (Temporary Assistance for Needy Families), the U.S. welfare system in place after the 1996 reforms, with those of TANF's predecessor, AFDC (Aid to Families with Dependent Children), using the experience in one state, Wisconsin, as an example. Is the new program successful in avoiding the "poverty…

In policy research a frequent aim is to estimate treatment effects separately by subgroups. This endeavor becomes a methodological challenge when the subgroups are defined by post-treatment, rather than pre-treatment, variables because if analyses are performed in the same way as with pre-treatment variables, causal interpretations are no longer…