This paper studies the policy impact of civil service regulations,
exploiting reforms undertaken by US state governments throughout
the twentieth century. These reforms replaced political patronage with
a civil service recruited based on merit and protected from politics.
I find that state politicians respond to these changes by spending
relatively less through the reformed state-level bureaucracies.
Instead, they allocate more funds to lower level governments. The
reallocation of expenditures leads to reduced long-term investment
by state governments.
"Civil Service Rules and Policy Choices: Evidence from US State Governments."
American Economic Journal: Economic Policy,
Bureaucracy; Administrative Processes in Public Organizations; Corruption
State and Local Budget and Expenditures
Intergovernmental Relations; Federalism; Secession
State and Local Government; Intergovernmental Relations: Other