Do Politicians Spend Money Differently Depending On Its Source?

If you found a hundred-dollar bill on the sidewalk, would you spend it differently than a hundred dollars made at work? This same question applies to politicians. Governments collect revenues from a variety of sources, does where the money comes from change how it’s spent? In a paper looking at taxes and royalties from natural resources in Columbia, University of Chicago Professor of Public Policy Luis Martinez shows how the source of revenue seems to determine whether it is wasted frivolously or put toward necessary public projects.

Episode 84 of the Not Another Politics Podcast podcast, hosted by University of Chicago Podcast Network, titled "Do Politicians Spend Money Differently Depending On Its Source?" was published on March 30, 2023 and runs 47 minutes.

March 30, 2023 ·47m · Not Another Politics Podcast

Summary

If you found a hundred-dollar bill on the sidewalk, would you spend it differently than a hundred dollars made at work? This same question applies to politicians. Governments collect revenues from a variety of sources, does where the money comes from change how it’s spent? In a paper looking at taxes and royalties from natural resources in Columbia, University of Chicago Professor of Public Policy Luis Martinez shows how the source of revenue seems to determine whether it is wasted frivolously or put toward necessary public projects.

Episode Description