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The Causes of Fiscal Transparency: Evidence from the U.S. States

Author

Listed:
  • James E. Alt

    (International Monetary Fund)

  • David Dreyer Lassen

    (International Monetary Fund)

  • Shanna Rose

    (International Monetary Fund)

Abstract

We use unique panel data on the evolution of transparent budget procedures in the U.S. states over the past three decades to explore the political and economic determinants of fiscal transparency. Our case studies and quantitative analysis suggest that both politics and fiscal policy outcomes influence the level of transparency. More equal political competition and power sharing are associated with both greater levels of and increases in fiscal transparency during the sample period. Political polarization and past fiscal conditions, in particular state government debt and budget imbalances, also appear to affect the level of transparency. Copyright 2006, International Monetary Fund

Suggested Citation

  • James E. Alt & David Dreyer Lassen & Shanna Rose, 2006. "The Causes of Fiscal Transparency: Evidence from the U.S. States," IMF Staff Papers, Palgrave Macmillan, vol. 53(si), pages 1-2.
    • Handle: RePEc:pal:imfstp:v::y:2006:i:si:p:2
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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