State and Local Antipoverty Expenditures

Abstract

State and local antipoverty expenditures are functionally related to the needs Abstract of the poor, state fiscal capacity and willingness to meet these needs, economies of scale, and external financial assistance. This study examines that multi-variate relationship for 1957 through 1972. The evidence indicates a sharp decline in state and local antipoverty expenditures per poor person. However, federal effort has grown enormously and has more than compensated for the decrease in lower level expenditures. There is wide variation across the country in popular support for aiding the poor. Affordability of antipoverty programs is the key to explaining expenditures. Needs do not play the major role in stimulating spending.