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Fiscal Effects of the Voter Initiative in the First Half of the Twentieth Century

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  • Matsusaka, John G

Abstract

This paper compares the fiscal policy of initiative and noninitiative states in the first half of the twentieth century. States with initiatives had higher combined state and local expenditure after controlling for income and other demographics but a lower ratio of state to local expenditure. This, together with existing evidence from later in the century, suggests that the voter initiative does not have a consistent effect on the overall size of state and local government. However, it does systematically lead to more decentralized expenditure. Copyright 2000 by the University of Chicago.

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  • Matsusaka, John G, 2000. "Fiscal Effects of the Voter Initiative in the First Half of the Twentieth Century," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 619-650, October.
  • Handle: RePEc:ucp:jlawec:v:43:y:2000:i:2:p:619-50
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    File URL: http://dx.doi.org/10.1086/467467
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    1. Poterba, James M, 1996. "Budget Institutions and Fiscal Policy in the U.S. States," American Economic Review, American Economic Association, vol. 86(2), pages 395-400, May.
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    9. Robert P. Inman & Daniel L. Rubinfeld, 1997. "Rethinking Federalism," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 43-64, Fall.
    10. Matsusaka, John G, 1995. "Fiscal Effects of the Voter Initiative: Evidence from the Last 30 Years," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 587-623, June.
    11. Peltzman, Sam, 1980. "The Growth of Government," Journal of Law and Economics, University of Chicago Press, vol. 23(2), pages 209-287, October.
    12. DelRossi, Alison F. & Inman, Robert P., 1999. "Changing the price of pork: the impact of local cost sharing on legislators' demands for distributive public goods," Journal of Public Economics, Elsevier, vol. 71(2), pages 247-273, February.
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