Andrew Wisniewski ACF Abstract FY12

"A Geopolitical Analysis of the Distribution of American Recovery and Reinvestment Act Funds"

Michigan Academy of Science, Arts & Letters

This study examines the political and economic variable which determined the geographic distribution of contracts, grants and loans under the American Recovery and re-investment Act of 2009. The empirical results suggest a strong relationship exists between the party of the congressmen controlling the district and the local amount of stimulus award monies in the district. With Democratic districts receiving more funds than Republican districts on a per capita basis. The unemployment rate, which was expected to have a significant positive effect on stimulus monies awarded per capita actually had a significant negative relationship with stimulus monies awarded per capita at the congressional district level. The poverty rate had a significant and positive relationship with stimulus monies per capita. This relationship which is in the inverse of the relationship established at the state level in previous research needs further investigation.