The Line Item Veto and Public Sector Budgets: Evidence from the States
AbstractRecent proposals assume that endowing the U.S. President with a line item veto will reduce spending. Analysis of a rich set of state budget data indicates that long run budgets are not altered by an item veto. In the short run, the item veto's potency is contingent upon the political setting. Governors with political incentives to use an item veto alter spending and revenues in a statistically significant and quantitatively important fashion. These results suggest that adoption of the line item veto, in general, is unlikely to reduce the size of the federal government.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2531.
Date of creation: Mar 1988
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steven G. Craig & Robert P. Inman, 1986.
"Education, Welfare, and the "New" Federalism: State Budgeting in a Federalist Public Economy,"
NBER Working Papers
1562, National Bureau of Economic Research, Inc.
- Steven Craig & Robert P. Inman, 1986. "Education, Welfare and the “New” Federalism: State Budgeting in a Federalist Public Economy," NBER Chapters, in: Studies in State and Local Public Finance, pages 187-228 National Bureau of Economic Research, Inc.
- Feenberg, Daniel R. & Rosen, Harvey S., 1987.
"Tax structure and public sector growth,"
Journal of Public Economics,
Elsevier, vol. 32(2), pages 185-201, March.
- Christian Bj�rnskov & Niklas Potrafke, 2012.
"Political Ideology and Economic Freedom Across Canadian Provinces,"
Eastern Economic Journal,
Palgrave Macmillan, vol. 38(2), pages 143-166.
- Christian Bjørnskov & Niklas Potrafke, 2009. "Political ideology and economic freedom across Canadian provinces," Working Papers CEB 09-054.RS, ULB -- Universite Libre de Bruxelles.
- Arnt Hopland, 2013. "Central government control and fiscal adjustment: Norwegian evidence," Economics of Governance, Springer, vol. 14(2), pages 185-203, May.
- Timothy J. Besley & Harvey S. Rosen, 1999.
"Vertical Externalities in Tax Setting: Evidence from Gasoline and Cigarettes,"
NBER Working Papers
6517, National Bureau of Economic Research, Inc.
- Besley, Timothy J. & Rosen, Harvey S., 1998. "Vertical externalities in tax setting: evidence from gasoline and cigarettes," Journal of Public Economics, Elsevier, vol. 70(3), pages 383-398, December.
- Tim Besley & Harvey S. Rosen, 1997. "Vertical externalities in tax settings: evidence from gasoline and cigarettes," IFS Working Papers W97/23, Institute for Fiscal Studies.
- Toke Aidt & Francesco Giovannoni, 2011.
"Critical decisions and constitutional rules,"
Social Choice and Welfare,
Springer, vol. 37(2), pages 219-268, July.
- Francesc Pujol, 2009. "Measuring US Presidents Political Commitment for Fiscal Discipline between 1920 and 2008," Faculty Working Papers 01/09, School of Economics and Business Administration, University of Navarra.
- Francesco Lagona & Fabio Padovano, 2007. "A nonlinear principal component analysis of the relationship between budget rules and fiscal performance in the European Union," Public Choice, Springer, vol. 130(3), pages 401-436, March.
- Reza Baqir, 2001. "Government Spending, Legislature Size, and the Executive Veto," IMF Working Papers 01/208, International Monetary Fund.
- Bohn, Henning & Inman, Robert P., 1996.
"Balanced-budget rules and public deficits: evidence from the U.S. states,"
Carnegie-Rochester Conference Series on Public Policy,
Elsevier, vol. 45(1), pages 13-76, December.
- Henning Bohn & Robert P. Inman, 1996. "Balanced Budget Rules and Public Deficits: Evidence from the U.S. States," NBER Working Papers 5533, National Bureau of Economic Research, Inc.
- Osterloh, Steffen & Heinemann, Friedrich & Kalb, Alexander, 2013.
"Sovereign risk premia: The link between fiscal rules and stability culture,"
Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order
80043, Verein für Socialpolitik / German Economic Association.
- Heinemann, Friedrich & Osterloh, Steffen & Kalb, Alexander, 2013. "Sovereign risk premia: The link between fiscal rules and stability culture," ZEW Discussion Papers 13-016, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- James M. Poterba, 1997. "Do Budget Rules Work?," NBER Working Papers 5550, National Bureau of Economic Research, Inc.
- Poterba, James M., 1995.
"Capital budgets, borrowing rules, and state capital spending,"
Journal of Public Economics,
Elsevier, vol. 56(2), pages 165-187, February.
- James Poterba, 1992. "Capital Budgets, Borrowing Rules, and State Capital Spending," NBER Working Papers 4235, National Bureau of Economic Research, Inc.
- George Crowley, 2012. "Spatial dependence in constitutional constraints: the case of US states," Constitutional Political Economy, Springer, vol. 23(2), pages 134-165, June.
- Vincent C. Blackburn & Richard Gerlach & Vasilis Sarafidis, 2007. "Dynamic Budgetary Adjustments in the Australian State Government Finance Sector: An Econometric Approach," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 3(2), pages 125-159, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.