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dc.contributor.authorPlotnikova, Mariaen_US
dc.date.accessioned2014-03-14T20:33:58Z
dc.date.available2014-03-14T20:33:58Z
dc.date.issued2005-02-28en_US
dc.identifier.otheretd-04212005-121805en_US
dc.identifier.urihttp://hdl.handle.net/10919/31806
dc.description.abstractThis thesis analyzes the impact of capital budget on capital spending in the U.S. states. The analysis is based on the James Poterba's 1995 study of the impact of a capital budget on capital spending using 1962 U.S. state-level data. I first replicate Poterba's model using the 1992-1996 data set that I had constructed for this study. I then extend Poterba's model to include a set of variables that allows exploration of the specific effects of the regulatory environment on spending outcomes in each state. These are mainly categorical variables that classify states in accordance with their definition of capital expenditure, organization of capital planning process, project selection and cost estimating techniques and capital financing practices. These were constructed using the data of the 1997 NASBO survey after reviewing the suggestions of practitioners and policy makers, as well as those engaged in research in this field. The introduction of a set of budget rule/budget composition variables into the analysis is an important contribution of this study. I also introduce additional control variables such as those controlling for the age of infrastructure. This study supports the claim that government spending is determined by a host of causal factors that can be grouped into four broad categories, (1) demographic-economic factors, representing both demand for public capital and source of its financing, (2) political decision-making factors that reflect electorate/party in power preferences for spending, (3) capital stock variables that relate to the age of infrastructure and control for spending culture in a state, and (4) budget composition/spending rules. The main finding of this study is the confirmation of Poterba's finding with respect to the positive effect of capital budget on capital spending using a recent data set and longer time frame of analysis. Another major contribution of this study is a statistically significant effect of sixteen spending rule/ budget composition variables. The results of this study support the basic premise found in the literature that budget process affects capital spending.en_US
dc.publisherVirginia Techen_US
dc.relation.haspartETDVTrev.pdfen_US
dc.rightsI hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to Virginia Tech or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report.en_US
dc.subjectcapital budgeten_US
dc.subjectstate spendingen_US
dc.subjectstate budgeting practicesen_US
dc.titleThe Effect of a Capital Budget on Capital Spending in the U.S. Statesen_US
dc.typeThesisen_US
dc.contributor.departmentUrban Affairs and Planningen_US
dc.description.degreeMaster of Public and International Affairsen_US
thesis.degree.nameMaster of Public and International Affairsen_US
thesis.degree.levelmastersen_US
thesis.degree.grantorVirginia Polytechnic Institute and State Universityen_US
thesis.degree.disciplineUrban Affairs and Planningen_US
dc.contributor.committeechairZahm, Diane L.en_US
dc.contributor.committeememberZody, Richarden_US
dc.contributor.committeememberStephenson, Max O. Jr.en_US
dc.identifier.sourceurlhttp://scholar.lib.vt.edu/theses/available/etd-04212005-121805/en_US
dc.date.sdate2005-04-21en_US
dc.date.rdate2006-06-27
dc.date.adate2005-06-27en_US


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