Property Tax Limits, Balanced Budget Rules, and Line-Item Vetoes: A Long-Run View
Abstract This paper explores the early development of three important fiscal institutions faced by U.S. state governments: property tax limits (PTLs), balanced budget rules (BBRs), and the gubernatorial line-item veto (LIV). Specifically, this study attempts to provide historical context for their development and an empirical investigation of their long-run effect on state finances (running from 1830 to 1920). Results, which are robust to a number of specifications, suggest that early PTLs decreased both revenues and expenditures, BBRs had a larger effect on revenues rather than expenditures, while the LIV had a somewhat limited effect on both revenues and expenditures.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 43 (2017)
Issue (Month): 2 (March)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
Postal:c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
Phone: (201) 684-7346
Web page: https://www.qu.edu/eea/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/41302|
References listed on IDEAS
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.:
- Dove, John A., 2014. "Financial markets, fiscal constraints, and municipal debt: lessons and evidence from the panic of 1873," Journal of Institutional Economics, Cambridge University Press, vol. 10(01), pages 71-106, March.
- Timothy Besley & Anne Case, 2003.
"Political Institutions and Policy Choices: Evidence from the United States,"
Journal of Economic Literature,
American Economic Association, vol. 41(1), pages 7-73, March.
- Besley, Timothy J. & Case, Anne, 2002. "Political Institutions and Policy Choices: Evidence from the United States," CEPR Discussion Papers 3498, C.E.P.R. Discussion Papers.
- Tim Besley, 2002. "Political institutions and policy choices: evidence from the United States," IFS Working Papers W02/13, Institute for Fiscal Studies.
- Clifford F.Thies, 2002. "The American Railroad Network during the Early 19th Century:Private versus Public Enterprise," Cato Journal, Cato Journal, Cato Institute, vol. 22(2), pages 229-261, Fall.
- Namsuk Kim & John Joseph Wallis, 2003. "The Market for American State Government Bonds in Britain and the United States, 1830-1843," NBER Working Papers 10108, National Bureau of Economic Research, Inc.
- Alberto Alesina & Tamim Bayoumi, 1996. "The Costs and Benefits of Fiscal Rules: Evidence from U.S. States," NBER Working Papers 5614, National Bureau of Economic Research, Inc.
- Ronald J. Shadbegian, 1998. "Do Tax and Expenditure Limitations Affect Local Government Budgets? Evidence From Panel Data," Public Finance Review, , vol. 26(2), pages 118-136, March.
- Alm, James & Evers, Mark, 1991. "The Item Veto and State Government Expenditures," Public Choice, Springer, vol. 68(1-3), pages 1-15, January.
- Dearden, James A & Husted, Thomas A, 1993. "Do Governors Get What They Want?: An Alternative Examination of the Line-Item Veto," Public Choice, Springer, vol. 77(4), pages 707-723, December.
- 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.
- James M. Poterba, 1993. "State Responses to Fiscal Crisis: The Effects of Budgetary Institutionsand Politics," NBER Working Papers 4375, National Bureau of Economic Research, Inc.
- repec:cto:journl:v:20:y:2000:i:2:p:255-277 is not listed on IDEAS
- Carter, John R & Schap, David, 1990. "Line-Item Veto: Where Is Thy Sting?," Journal of Economic Perspectives, American Economic Association, vol. 4(2), pages 103-118, Spring.
- Ellen Seljan, 2014. "The limits of tax and expenditure limits: TEL implementation as a principal-agent problem," Public Choice, Springer, vol. 159(3), pages 485-501, June.
- Arthur Grinath III & John Joseph Wallis & Richard Sylla, 1997. "Debt, Default, and Revenue Structure: The American State Debt Crisis in the Early 1840s," NBER Historical Working Papers 0097, National Bureau of Economic Research, Inc.
- Burton Abrams & William Dougan, 1986. "The effects of constitutional restraints on governmental spending," Public Choice, Springer, vol. 49(2), pages 101-116, January.
- Dale Bails and Margie A. Tieslau, 2000. "The Impact of Fiscal Constitutions on State and Local Expenditures," Cato Journal, Cato Journal, Cato Institute, vol. 20(2), Fall.
- John Dove, 2012. "Credible commitments and constitutional constraints: state debt repudiation and default in nineteenth century America," Constitutional Political Economy, Springer, vol. 23(1), pages 66-93, March.
- Ronald J. Shadbegian, 1996. "Do Tax And Expenditure Limitations Affect The Size And Growth Of State Government?," Contemporary Economic Policy, Western Economic Association International, vol. 14(1), pages 22-35, 01.
- English, William B, 1996. "Understanding the Costs of Sovereign Default: American State Debts in the 1840's," American Economic Review, American Economic Association, vol. 86(1), pages 259-275, March.
- Wallis, John Joseph, 2005. "Constitutions, Corporations, and Corruption: American States and Constitutional Change, 1842 to 1852," The Journal of Economic History, Cambridge University Press, vol. 65(01), pages 211-256, March.
- David M. Primo, 2006. "Stop Us Before We Spend Again: Institutional Constraints On Government Spending," Economics and Politics, Wiley Blackwell, vol. 18(3), pages 269-312, November.
- Yilin Hou & Daniel Smith, 2010. "Do state balanced budget requirements matter? Testing two explanatory frameworks," Public Choice, Springer, vol. 145(1), pages 57-79, October.
- Dale Bails, 1982. "A critique on the effectiveness of tax-expenditure limitations," Public Choice, Springer, vol. 38(2), pages 129-138, January. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pal:easeco:v:43:y:2017:i:2:d:10.1057_s41302-016-0001-1. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.