Does the Stringency of State Tax and Expenditure Limitations Discourage Political Manipulation in Fiscal Reserves
Bibliographic Data
| ID | 6359536 |
|---|---|
| Authors | Seeun Ryu (0000-0001-6865-069X, Institute of Governmental Studies (IGS) Korea University, corresponding author), Inyoung Cho (0000-0002-2450-2131, National Assembly Futures Institute, corresponding author), Jiseul Kim (0000-0002-1989-1398, Arkansas State University, corresponding author) |
| Year | 2020 |
| Volume | 81 |
| Issue | 3 |
| Pages | 375-388 |
| Publication date | 2020-10-20 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Public Administration Review (JOURNAL) |
| Journal identifiers | ISSN: 0033-3352 • E-ISSN: 1540-6210 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/puar.13306 |
| OpenAlex | W3084921899 |
| Language | EN |
| Citations received | 6 |
| References cited | 43 |
This article examines how state tax and expenditure limitations (TELs) affect the size of fiscal reserves over election cycles. Using a panel data set of 47 U.S. states from 1986 to 2013, we find that the persistent pattern of electoral cycles in general fund balances (GFBs) disappears in states with stricter TELs. Regarding a budget stabilization fund balances (BSFs), the preelection and election downward effect diminishes and becomes statistically insignificant while the postelection upward effect increases and becomes significant in states with stricter TELs. Our findings reveal that the stringency of TELs not only eliminates electioneering's impact on GFBs but also coincides with increases in BSFs, particularly in postelection years. Consistent with the principal–agent theory, politicians tend to use a budget stabilization fund (BSF) as a secondary saving account to circumvent stronger TELs and save more BSFs after elections
Econometrics · Economics · Macroeconomics · Monetary economics · Panel data · Political science · Politics · Principal (computer security · Public economics · State (computer science · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization
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| Unique citing works | 6 |
|---|---|
| Citations per year | 1,2 |
| Citation span | 2021 - 2026 (6) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 6 |