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The determinants of off-budget activity of state and local governments

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  • Michael Marlow
  • David Joulfaian

Abstract

The primary finding of this paper is that the off-budget activity of the public sector is significantly and positively related to on-budget activity by state and local governments. We suggest the following policy implications. One, there appears to be evidence that the composition of total government activity is related to the relative costs of the alternative avenues of providing governmental activity. Future research into determining the nature of the relative cost differences may be one useful means of understanding both the composition of government activity as well as its total size. Two, our ability to measure the “true” size of public sector participation in the economy must go well beyond our attempt here. While we have presented information on one of the important “hidden” elements of public sector participation, we are still a long way from effectively incorporating similar data on legislation, regulations and so forth into our empirical tests. Further research into these issues is clearly warranted. Copyright Kluwer Academic Publishers 1989

Suggested Citation

  • Michael Marlow & David Joulfaian, 1989. "The determinants of off-budget activity of state and local governments," Public Choice, Springer, vol. 63(2), pages 113-123, November.
  • Handle: RePEc:kap:pubcho:v:63:y:1989:i:2:p:113-123
    DOI: 10.1007/BF00153395
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    References listed on IDEAS

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    Cited by:

    1. Ding, Chengri & Niu, Yi & Lichtenberg, Erik, 2014. "Spending preferences of local officials with off-budget land revenues of Chinese cities," China Economic Review, Elsevier, vol. 31(C), pages 265-276.
    2. Roberto Fernández Llera & María A. García Valiñas, 2010. "Efficiency and elusion: both sides of public enterprises in Spain," Working Papers 2010/5, Institut d'Economia de Barcelona (IEB).
    3. Daniela Monacelli & Maria Grazia Pazienza & Chiara Rapallini, 2016. "Municipality Budget Rules and Debt: Is the Italian Regulation Effective?," Public Budgeting & Finance, Wiley Blackwell, vol. 36(3), pages 114-140, September.
    4. Roberto Fernández Llera & María A. García Valiñas, 2013. "The Role of Regional Public Enterprises in Spain: Room for a Shadow Government?," Hacienda Pública Española, IEF, vol. 205(2), pages 9-31, June.
    5. David Cantarero & Marta Pascual & Roberto Fernandez & María A. García-Valiñas, 2004. "Local government debt: an application to the Spanish case," ERSA conference papers ersa04p282, European Regional Science Association.
    6. repec:kap:porgrv:v:18:y:2018:i:1:d:10.1007_s11115-016-0361-3 is not listed on IDEAS
    7. Poterba, James M, 1994. "State Responses to Fiscal Crises: The Effects of Budgetary Institutions and Politics," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 799-821, August.

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