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Initiatives and government expenditures

  • Jeffrey Zax

This paper demonstrates that provisions for initiatives have important effects on government spending. Provisions for initiatives encourage legislatures to approve any proposal which might attract substantial popular support. If these proposals are more likely to advocate increases than reductions in expenditures, the presence of initiative provisions will increase total expenditures. Direct government expenditures per capita are significantly higher in both states and municipalities which permit initiatives. Copyright Kluwer Academic Publishers 1989

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Article provided by Springer in its journal Public Choice.

Volume (Year): 63 (1989)
Issue (Month): 3 (December)
Pages: 267-277

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Handle: RePEc:kap:pubcho:v:63:y:1989:i:3:p:267-277
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  1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  2. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
  3. Randall G. Holcombe & Paul C. Taylor, 1980. "Tax Referenda and the Voluntary Exchange Model of Taxation: a Suggested Implementation," Public Finance Review, , vol. 8(1), pages 107-114, January.
  4. Bruce R. Bolnick, 1985. "The National Budget Referendum: Proceed with Caution," Cato Journal, Cato Journal, Cato Institute, vol. 5(1), pages 337-350, Spring/Su.
  5. Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, vol. 63(3), pages 280-96, June.
  6. Vincent Munley & Kenneth Greene, 1978. "Fiscal illusion, the nature of public goods and equation specification," Public Choice, Springer, vol. 33(1), pages 95-100, March.
  7. Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-60, June.
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