Abstract
Using new measures to compare both the 48 states and 52 upstate New York counties, this research reformulates V. O. Key's hypothesis that noncompetitive systems benefit upper socioeconomic groups while competitive systems favor the lower classes. In designing these tests, we returned to Key's original conceptualization, which, contrary to the subsequent research that claimed to test his hypothesis, did not separate and oppose the political and economic sectors. In line with Key's formulation, we find that competitive political structure goes hand in hand with competitive economic structure and together they determine an array of fiscal policies that are different from those of noncompetitive political-economic systems. This return to the original sense of the hypothesis resolves many of the puzzling findings that have been generated in the last several decades. Democratic party affiliation and urban differentiation also affected revenues and expenditures. These same characteristics were previously shown to affect poverty and social pathology. That they now affect public policy for dealing with these problems means that those caught in the web of poverty are in double jeopardy.
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Young, R.C., Rolleston, G.L. & Geisler, C.C. Competitive structure and fiscal policy. Soc Indic Res 14, 421–452 (1984). https://doi.org/10.1007/BF00300451
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DOI: https://doi.org/10.1007/BF00300451