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Political Competition and State Government Size: Do Tighter Elections Produce Looser Budgets?

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  • Rogers, Diane Lim
  • Rogers, John H

Abstract

We test implications of political competition theory concerning government size, using data from U.S. states. We find that greater political competition in the race for governor acts as a check against bigger government. Evidence on the effectiveness of legal limits on expenditures and/or revenues growth is mixed. The Democratic Party is associated with bigger government, but only when party representation in both the governor's house and the legislature is strong. The flypaper effect of grants is found to be strong. Our results have implications for models of fiscal illusion. Copyright 2000 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 105 (2000)
Issue (Month): 1-2 (October)
Pages: 1-21

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Handle: RePEc:kap:pubcho:v:105:y:2000:i:1-2:p:1-21

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Web page: http://www.springerlink.com/link.asp?id=100332

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Which Governors Are Proposing Spending Increases and Which are Proposing Cuts?
    by Matt Mitchell in Neighborhood Effects on 2011-06-03 19:02:59
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Cited by:
  1. Saibal Ghosh, 2010. "Does Political Competition Matter for Economic Performance? Evidence from Sub-national Data," Political Studies, Political Studies Association, vol. 58, pages 1030-1048, December.
  2. Tim Besley & Ian Preston, 2006. "Electoral bias and policy choice: theory and evidence," IFS Working Papers W06/03, Institute for Fiscal Studies.
  3. H. Erler, 2007. "Legislative term limits and state spending," Public Choice, Springer, vol. 133(3), pages 479-494, December.
  4. Albert Solé Ollé, 2005. "The effects of party competition on budget outcomes: Empirical evidence from local governments in Spain," Working Papers 2005/2, Institut d'Economia de Barcelona (IEB).
  5. Aidt, T.S. & Eterovic, D.S., 2007. "Give and Take: Political Competition, Participation and Public Finance in 20th Century Latin America," Cambridge Working Papers in Economics 0714, Faculty of Economics, University of Cambridge.
  6. Fernando Ferreira & Joseph Gyourko, 2007. "Do Political Parties Matter? Evidence from U.S. Cities," NBER Working Papers 13535, National Bureau of Economic Research, Inc.
  7. Aidt, Toke S. & Eterovic, Dalibor S., 2011. "Political competition, electoral participation and public finance in 20th century Latin America," European Journal of Political Economy, Elsevier, vol. 27(1), pages 181-200, March.
  8. Eric Dubois & Matthieu Leprince & Sonia Paty, 2007. "The Effects of Politics on Local Tax Setting: Evidence from France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00800688, HAL.
  9. Dalibor Eterovic & Toke Aidt, 2010. "Political Competition, Electoral Participation and Public Finance in 20th Century Latin America," Working Papers wp_001, Adolfo Ibáñez University, School of Government.
  10. Maria De Paola & Vincenzo Scoppa, 2010. "Political Competition And Politician Quality: Evidence From Italian Municipalities," Working Papers 201005, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  11. Andrew Pickering & James Rockey, 2013. "Ideology and the size of US state government," Public Choice, Springer, vol. 156(3), pages 443-465, September.
  12. Andrew C. Pickering & James Rockey, 2012. "Ideology and the growth of US state government," Working Papers 2012/6, Institut d'Economia de Barcelona (IEB).
  13. Rodriguez-Oreggia, Eduardo & Costa-Font, Joan & Luna Pla, Dario, 2002. "Political competition and the allocation of public investment in Mexico," ERSA conference papers ersa02p260, European Regional Science Association.
  14. Dalibor Eterovic & Nicolas Eterovic, 2010. "Political Competition vs. PoliticalParticipation: Effects on Government's Size," Working Papers wp_006, Adolfo Ibáñez University, School of Government.

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