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Legislative Turnover, Fiscal Policy, And Economic Growth: Evidence From U.S. State Legislatures

Author

Listed:
  • Yogesh Uppal
  • Amihai Glazer

Abstract

Increased turnover among legislators can make them short‐sighted, affecting fiscal policy and economic growth. We exploit the exogenous variation in legislative turnover induced by term limit laws and by redistricting in the 50 U.S. states, finding that increased turnover increases capital spending by state governments, which may be designed to constrain future governments. The changes may cause long‐run distortions in the economy, reducing long‐term economic growth. (JEL H72, H73, H76)

Suggested Citation

  • Yogesh Uppal & Amihai Glazer, 2015. "Legislative Turnover, Fiscal Policy, And Economic Growth: Evidence From U.S. State Legislatures," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 91-107, January.
    • Handle: RePEc:bla:ecinqu:v:53:y:2015:i:1:p:91-107
    DOI: 10.1111/ecin.12118
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    Cited by:

    1. Weiss, Michael, 2025. "Legislative turnover: an in-depth look at Central and Eastern Europe," SocArXiv 2kdsh_v1, Center for Open Science.
    2. Eman Elish & Hossam Eldien Ahmed & Mostafa E. AboElsoud, 2023. "Military spending crowding out health and education spending: which views are valid in Egypt?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    3. Yakovlev, Pavel A. & Tosun, Mehmet S. & Lewis, William P., 2018. "The Fiscal Consequences of State Legislative Term Limits," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(3), January.
    4. Asako Yasushi & Matsubayashi Tetsuya & Ueda Michiko, 2016. "Legislative Term Limits and Government Spending: Theory and Evidence from the United States," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(3), pages 1501-1538, September.
    5. Yogesh Uppal, Thushyanthan Baskaran, 2023. "Political fragmentation, fiscal policy and economic growth in Indian States," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 20(2), pages 161-191, December.

    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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