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Does the Restrictiveness of State Tax and Expenditure Limitations Affect State Revenues and Expenditures?

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  • Lindsay Amiel
  • Steven Deller
  • Judith Stallmann
  • Craig Maher

Abstract

This paper examines the impact of tax and expenditure limitations (TELs) on state governments. We examine how TELs are represented in empirical modeling. We compare and contrast an index of state-level TEL restrictiveness to a simple dummy variable approach. We use a panel of data for the 50 U.S. states to capture changes in state TELs and a generalized method of moments (GMM) dynamic panel estimator. We find that results vary across the two methods of capturing the presence of TELs, suggesting that simple dummy variables are not sufficient to capture the heterogeneity of TELs across states and over time.

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  • Lindsay Amiel & Steven Deller & Judith Stallmann & Craig Maher, 2014. "Does the Restrictiveness of State Tax and Expenditure Limitations Affect State Revenues and Expenditures?," International Journal of Public Administration, Taylor & Francis Journals, vol. 37(4), pages 237-248.
  • Handle: RePEc:taf:lpadxx:v:37:y:2014:i:4:p:237-248
    DOI: 10.1080/01900692.2013.812113
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    Cited by:

    1. Yakovlev, Pavel A. & Tosun, Mehmet S. & Lewis, William P., 2018. "The Fiscal Consequences of State Legislative Term Limits," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(3), January.

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