This paper examines the relationship between economic specialization and government expenditures. We hypothesize that citizens and firms in economically specialized regions pressure politicians to invest in core economic sectors in lieu of spending on public goods that benefit the broader economy, such as education. We investigate our hypothesis through an examination of the United States and India. We confirm a negative relationship between economically specialized U.S. states and education spending, and a positive relationship between economically specialized U.S. states and firm subsidies. Next, we examine the effects of an immediate shock in a region's level of economic specialization by comparing Indian states created from federal bifurcation. We show how the creation of two highly specialized states (Bihar and Jharkhand) from a diversified state (Undivided Bihar) was associated with a decline in education spending but an increase in subsidies for core sectors.

中文翻译：

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专业化诅咒：经济专业化如何塑造公共产品供给

本文考察了经济专业化与政府支出之间的关系。我们假设经济专业地区的公民和公司迫使政治家投资核心经济部门，而不是投资于有利于更广泛经济的公共产品，如教育。我们通过对美国和印度的考察来调查我们的假设。我们确认了经济专业化的美国州与教育支出之间的负相关关系，以及经济专业化的美国州与企业补贴之间的正相关关系。接下来，我们通过比较因联邦分叉而产生的印度各州，来检验直接冲击对地区经济专业化水平的影响。