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The Thermostatic Model of Responsiveness in the American States

Does the thermostatic model exist in the states? Using a unique data set on state spending preferences on education and welfare, I find evidence of dynamic policy representation and dynamic public responsiveness, but with important qualifications. As state support for spending on education or welfare increases, state expenditures increase, but only for states that are highly professional and, presumably, able to accurately gauge the preferences of residents. In other states, legislators are responding to national policy sentiment instead of specific state opinion. I find no evidence that initiative states are more responsive to state opinion. Empirical evidence for dynamic public responsiveness is more consistent across model specifications. As state expenditures on education or welfare increase, state preferences for additional spending decrease, even after controlling for federal expenditures. Finally, I find that policy representation and public responsiveness in the states are conditional on issue saliency. The results provide a more nuanced understanding about the degree of dynamic representation and responsiveness in the states and the thermostatic model more generally.