IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v20y1992i4p543-556.html
   My bibliography  Save this article

The Effect of Earmarked Revenues On the Level and Composition of Expenditures

Author

Listed:
  • Richard F. Dye

    (Lake Forest College)

  • Therese J. McGuire

    (University of Illinois)

Abstract

This article provides estimates of the impact of earmarked revenues on the level and composition of state expenditures. Examined are four types of state spending —total, elementary and secondary education, highways, and aid to nonschool local governments -and two measures of earmarking -earmarked revenues per capita and earmarked revenues as a share of the favored expenditure category. An extra dollar of earmarked revenues results in either no change in expenditures or in increases in expenditures that are much smaller than a dollar. A greater reliance on earmarking as a share of expenditures results in either no change in spending or lower expenditures.

Suggested Citation

  • Richard F. Dye & Therese J. McGuire, 1992. "The Effect of Earmarked Revenues On the Level and Composition of Expenditures," Public Finance Review, , vol. 20(4), pages 543-556, October.
    • Handle: RePEc:sae:pubfin:v:20:y:1992:i:4:p:543-556
    DOI: 10.1177/109114219202000410
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114219202000410
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114219202000410?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Brian A. Cromwell, 1989. "Dedicated taxes and rent capture by public employees," Working Papers (Old Series) 8904, Federal Reserve Bank of Cleveland.
    2. Borg, Mary O. & Mason, Paul M., 1988. "The Budgetary Incidence of a Lottery to Support Education," National Tax Journal, National Tax Association;National Tax Journal, vol. 41(1), pages 75-85, March.
    3. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922.
    4. Browning, Edgar K, 1975. "Collective Choice and General Fund Financing," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 377-390, April.
    5. Borg, Mary O. & Mason, Paul M., 1988. "The Budgetary Incidence of a Lottery to Support Education," National Tax Journal, National Tax Association, vol. 41(1), pages 75-85, March.
    6. James M. Buchanan, 1963. "The Economics of Earmarked Taxes," Journal of Political Economy, University of Chicago Press, vol. 71, pages 457-457.
    7. Fisher, Ronald C., 1982. "Income and grant effects on local expenditure: The flypaper effect and other difficulties," Journal of Urban Economics, Elsevier, vol. 12(3), pages 324-345, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rodger Barros Antunes Campos & Gustavo Pereira Serra, 2020. "The decision on unconstitutionality of earmarking and its impact on the housing access: Evidence from São Paulo State, Brazil," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(1), pages 25-42, February.
    2. Bhatt, Rachana & Rork, Jonathan C. & Walker, Mary Beth, 2011. "Earmarking and the business cycle: The case of state spending on higher education," Regional Science and Urban Economics, Elsevier, vol. 41(4), pages 352-359, July.
    3. Yeti Nisha Madhoo & Shyam Nath, 2014. "Beneficiary charges: The Cinderella of subnational finance," Chapters, in: Richard M. Bird & Jorge Martinez-Vazquez (ed.), Taxation and Development: The Weakest Link?, chapter 11, pages 364-402, Edward Elgar Publishing.
    4. Whitney B. Afonso, 2015. "Leviathan or Flypaper: Examining the Fungibility of Earmarked Local Sales Taxes for Transportation," Public Budgeting & Finance, Wiley Blackwell, vol. 35(3), pages 1-23, September.
    5. Jeremy Jackson, 2013. "Tax earmarking, party politics and gubernatorial veto: theory and evidence from US states," Public Choice, Springer, vol. 155(1), pages 1-18, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dieter Bös, 1999. "Earmarked Taxation: Welfare versus Political Support," CESifo Working Paper Series 207, CESifo.
    2. Bhatt, Rachana & Rork, Jonathan C. & Walker, Mary Beth, 2011. "Earmarking and the business cycle: The case of state spending on higher education," Regional Science and Urban Economics, Elsevier, vol. 41(4), pages 352-359, July.
    3. Antonio Cabrales & Haydée Lugo, 2011. "An impure public good model with lotteries in large grou," Documentos de Trabajo del ICAE 2011-05, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    4. Melle Marco C., 2014. "Eine europäische Bemessungsgrundlage für die Körperschaftsteuer? Konzeption und ordnungsökonomische Analyse / Conceptual design and constitutional economics analysis of a European tax base for corpora," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 65(1), pages 133-156, January.
    5. Jeremy Jackson, 2013. "Tax earmarking, party politics and gubernatorial veto: theory and evidence from US states," Public Choice, Springer, vol. 155(1), pages 1-18, April.
    6. Levi Pérez & Brad R. Humphreys, 2011. "The Income Elasticity of Lottery: New Evidence from Micro Data," Public Finance Review, , vol. 39(4), pages 551-570, July.
    7. Rubenstein, Ross & Scafidi, Benjamin, 2002. "Who Pays and Who Benefits? Examining the Distributional Consequences of the Georgia Lottery for Education," National Tax Journal, National Tax Association, vol. 55(N. 2), pages 223-238, June.
    8. Harriet A. Stranahan & Mary O. Borg, 1998. "Separating the Decisions of Lottery Expenditures and Participation: a Truncated Tobit Approach," Public Finance Review, , vol. 26(2), pages 99-117, March.
    9. Roger Congleton, 2014. "The contractarian constitutional political economy of James Buchanan," Constitutional Political Economy, Springer, vol. 25(1), pages 39-67, March.
    10. Wallace E. Oates & Wallace E. Oates, 2004. "An Essay on Fiscal Federalism," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 22, pages 384-414, Edward Elgar Publishing.
    11. Harriet A. Stranahan & Mary O. Borg, 2004. "Some Futures are Brighter than Others: the Net Benefits Received by Florida Bright Futures Scholarship Recipients," Public Finance Review, , vol. 32(1), pages 105-126, January.
    12. William C. Rivenbark, 1998. "The Tax Incidence of Casino Gaming in Mississippi," Public Finance Review, , vol. 26(6), pages 583-598, November.
    13. Been-Lon Chen & Shun-Fa Lee, 2009. "General Fund Financing, Earmarking, Economic Stabilization, and Welfare," Public Finance Review, , vol. 37(5), pages 507-538, September.
    14. Ghent, Linda S. & Grant, Alan P., 2010. "The Demand for Lottery Products and Their Distributional Consequences," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(2), pages 253-268, June.
    15. Ethan Grumstrup & Mark W. Nichols, 2021. "Is video gambling terminal placement and spending in Illinois correlated with neighborhood characteristics?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(2), pages 273-298, October.
    16. Humphreys, Brad & Perez, Levi, 2011. "Lottery Participants and Revenues: An International Survey of Economic Research on Lotteries," Working Papers 2011-17, University of Alberta, Department of Economics.
    17. Costa-i-Font, Joan & De-Albuquerque, Filipe & Doucouliagos, Hristos, 2011. "How significant are fiscal interactions in designing federations?: a meta-regression analysis," LSE Research Online Documents on Economics 37535, London School of Economics and Political Science, LSE Library.
    18. Giebeler, Constanze & Rebeggiani, Luca, 2019. "Who Loves to Gamble? Socio-Economic Factors Determining Gambling Behaviour in Germany," MPRA Paper 94735, University Library of Munich, Germany.
    19. Rubenstein, Ross & Scafidi, Benjamin, 2002. "Who Pays and Who Benefits? Examining the Distributional Consequences of the Georgia Lottery for Education," National Tax Journal, National Tax Association;National Tax Journal, vol. 55(2), pages 223-238, June.
    20. Annemie Maertens & A. V. Chari & David R. Just, 2014. "Why Farmers Sometimes Love Risks: Evidence from India," Economic Development and Cultural Change, University of Chicago Press, vol. 62(2), pages 239-274.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:20:y:1992:i:4:p:543-556. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.