Party Politics, Governors, and Healthcare Expenditures

Economics & Politics, Forthcoming

Posted: 1 Nov 2014

See all articles by Nayan Krishna Joshi

Nayan Krishna Joshi

Wayne State University - Department of Economics

Date Written: October 30, 2014

Abstract

This study examines the impact of gubernatorial partisanship on the growth of healthcare expenditures (HCE) for a panel dataset of 50 U.S. states over the 1991-2009 period. Using the parametric regression discontinuity design, I find no partisan effect on the growth of state's per capita real total personal HCE. However, an analysis of the growth rates of the components of HCE suggests that there is a causal effect of party affiliation on the “prescription drugs” component. These findings are robust to the inclusion of additional covariates in the parametric approach as well to the use of the non-parametric regression discontinuity approach. The results further suggest that the impact of gubernatorial partisanship does not depend on the length of the governor's term in office.

Keywords: healthcare expenditures, regression discontinuity design, gubernatorial partisanship, political business cycle

JEL Classification: D72, C23, H51, H75, I18

Suggested Citation

Joshi, Nayan Krishna, Party Politics, Governors, and Healthcare Expenditures (October 30, 2014). Economics & Politics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2517091

Nayan Krishna Joshi (Contact Author)

Wayne State University - Department of Economics ( email )

656 W. Kirby
Detroit, MI 48202
United States

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