University of Michigan business professor Mayuram Krishnan and his two coathors Min-Seok Pang and Ali Tafti found what I thought was an interesting correlation in their paper “"Do CIO IT Budgets Explain Bigger or Smaller Governments? – Theory and Evidence from U.S. State Governments” (forthcoming in Management Science) suggesting that goverment investment in information technology is underdone. In particular, $1 more of information technology spending predicts $3.49 less in overall spending. You can find a news article on this by Greta Guest in the University of Michigan’s University Record here: “Do government technology investments pay off?”