Do Policy-Makers Earmark to Constrain their Successors? The Case of Environmental Earmarking
This paper examines whether legislators earmark funds in order to constrain the spending of future legislators with different preferences. Specifically, panel data is used to estimate the probability a new environmental earmarking law is passed as a function of Democrats holding and subsequently losing majority control of the government. The results of this study do not support this hypothesis. In fact, Democrats with a large majority who subsequently lose this majority power following the next election are found to be less likely to earmark funds for the environment. One possible explanation for this finding may be that competing forces make it more difficult for Democrats to pass legislation earmarking funds for the environment in the years before losing power, even if they have an increased incentive to do so. However, further results of this paper do not support this hypothesis. Rather, the evidence suggests Democrats do not earmark strategically.
|Date of creation:||Dec 2004|
|Date of revision:|
|Contact details of provider:|| Phone: (508)793-3362|
Fax: (508) 793-3708
Web page: http://www.holycross.edu/departments/economics/website/
More information through EDIRC
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.:
- Khilji, Nasir M. & Zampelli, Ernest M., 1994. "The fungibility of U.S. military and non-military assistance and the impacts on expenditures of major aid recipients," Journal of Development Economics, Elsevier, vol. 43(2), pages 345-362, April.
- Heller, Peter S, 1975. "A Model of Public Fiscal Behavior in Developing Countries: Aid, Investment, and Taxation," American Economic Review, American Economic Association, vol. 65(3), pages 429-45, June.
- McCleary, William, 1991. "The Earmarking of Government Revenue: A Review of Some World Bank Experience," World Bank Research Observer, World Bank Group, vol. 6(1), pages 81-104, January.
- Swaroop, Vinaya & Jha, Shikha & Sunil Rajkumar, Andrew, 2000. "Fiscal effects of foreign aid in a federal system of governance: The case of India," Journal of Public Economics, Elsevier, vol. 77(3), pages 307-330, September.
- Muhammed N. Islam & Saud A. Choudhury, 1990. "Testing the Exogeneity of Grants to Local Governments," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 676-92, August.
- Zampelli, Ernest M, 1986. "Resource Fungibility, the Flypaper Effect, and the Expenditure Impact of Grants-in-Aid," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 33-40, February.
- Wyckoff, Paul Gary, 1991. "Testing Bureaucratic Influence on Local School Expenditures by Comparing Survey and Expenditure Data," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 331-35, May.
- Feyzioglu, Tarhan & Swaroop, Vinaya & Zhu, Min, 1998. "A Panel Data Analysis of the Fungibility of Foreign Aid," World Bank Economic Review, World Bank Group, vol. 12(1), pages 29-58, January.
- Feldstein, Martin S, 1975. "Wealth Neutrality and Local Choice in Public Education," American Economic Review, American Economic Association, vol. 65(1), pages 75-89, March.
- Gang, Ira N. & Ali Khan, Haider, 1990. "Foreign aid, taxes, and public investment," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 355-369, November.
- Marsiliani, Laura & Renstrom, Thomas I, 2000. "Time Inconsistency in Environmental Policy: Tax Earmarking as a Commitment Solution," Economic Journal, Royal Economic Society, vol. 110(462), pages C123-38, March.
- Mwangi S. Kimenyi & Dwight R. Lee & Robert D. Tollison, 1990. "Efficient Lobbying and Earmarked Taxes," Public Finance Review, SAGE Publishing, vol. 18(1), pages 104-113, January.
- Bos, Dieter, 2000. "Earmarked taxation: welfare versus political support," Journal of Public Economics, Elsevier, vol. 75(3), pages 439-462, March.
- Cashel-Cordo, P. & Craig, S.G., 1988.
"The Public Sector Impact Of International Resource Transfers,"
24, Houston - Department of Economics.
- Cashel-Cordo, Peter & Craig, Steven G., 1990. "The public sector impact of international resource transfers," Journal of Development Economics, Elsevier, vol. 32(1), pages 17-42, January.
- Jukka Pirttilä, 1999. "Earmarking of Environmental Taxes and Pareto-Efficient Taxation," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 56(2), pages 202-, June.
- Jiang, Tingsong, 2001. "Earmarking of pollution charges and the sub-optimality of the Pigouvian tax," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), December.
- Dhillon, Amrita & Perroni, Carlo, 2001. "Tax earmarking and grass-roots accountability," Economics Letters, Elsevier, vol. 72(1), pages 99-106, July.
- Pack, Howard & Pack, Janet Rothenberg, 1990. "Is Foreign Aid Fungible? The Case of Indonesia," Economic Journal, Royal Economic Society, vol. 100(399), pages 188-94, March.
- Margaret Wilkinson, 1994. "Paying for public spending: is there a role for earmarked taxes?," Fiscal Studies, Institute for Fiscal Studies, vol. 15(4), pages 119-35, November.
- Athanassakos, Alex, 1990. "General Fund Financing versus Earmarked Taxes: An Alternative Model of Budgetary Choice in a Democracy," Public Choice, Springer, vol. 66(3), pages 261-78, September.
- Browning, Edgar K, 1975. "Collective Choice and General Fund Financing," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 377-90, April.
- Pack, Howard & Pack, Janet Rothenberg, 1993. "Foreign Aid and the Question of Fungibility," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 258-65, May.
- Susana Franco-Rodriguez, 2000. "Recent developments in fiscal response with an application to Costa Rica," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 429-441.
- Olmsted, George M. & Denzau, Arthur T. & Roberts, Judith A., 1993. "We voted for this? : Institutions and educational spending," Journal of Public Economics, Elsevier, vol. 52(3), pages 363-376, October.
When requesting a correction, please mention this item's handle: RePEc:hcx:wpaper:0408. 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: (Victor Matheson)
If references are entirely missing, you can add them using this form.