Federal Economic Development Transfers to State and Local Governments: An Empirical Assessment of Federal Grants Between 1940 and 2010

This study examines the contribution of the federal government to community and regional economic development by exclusively analyzing data on intergovernmental transfers to state and local governments. The study covers the years 1940 through 2010. The intent is to explore and define the patterns and trends within the community and regional development data and establish the extent to which incrementalism served as a basis for setting aside resources for accomplishing economic development objectives. Our findings indicate that the data patterns, trends, and relationships are nonlinear and unsupportive of the incrementalist perspective to resource allocation commonly found in major funds within the public sector.