Party Alternation, Divided Government, and Fiscal Performance within U.S. States
AbstractThe literature on U.S. state government fiscal performance has examined the role of institutional factors such as budget rules and divided government, but has largely ignored the impact of party alternation. This paper primarily focuses on whether party alternation in the governor’s office affects fiscal performance. Our hypothesis is that frequent party changes create a political environment that impacts fiscal performance. To further assess the impact of party alternation on fiscal performance, we consider our primary hypothesis in conjunction with the degree of division that exists between the governor’s office and the legislature. Using panel data from 37 states between 1971 and 2000 we test the hypothesis that frequent party alternation can be expected to affect fiscal performance and find strong support for the hypothesis.
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Bibliographic InfoPaper provided by Department of Economics, College of Business, Florida Atlantic University in its series Working Papers with number 06006.
Length: 18 pages
Date of creation: Jan 2006
Date of revision: Dec 2006
Publication status: forthcoming in Economics of Governance
Fiscal performance; state government; party alternation;
Other versions of this item:
- Peter Calcagno & Monica Escaleras, 2007. "Party alternation, divided government, and fiscal performance within US States," Economics of Governance, Springer, vol. 8(2), pages 111-128, February.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-18 (All new papers)
- NEP-PBE-2006-11-18 (Public Economics)
- NEP-POL-2006-11-18 (Positive Political Economics)
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