The Impact of State and Local Tax and Expenditure Limitations on State Economic Growth

Growth and Change

Volumn 43, Issue 1, 2012, Pages 56-84

  Deller, Steven ^a   Stallmann, Judith I ^b   Amiel, Lindsay ^a  

^a UNIVERSITY OF WISCONSIN MADISON   (United States)

^b UNIVERSITY OF MISSOURI   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

ECONOMIC GROWTH; EXPENDITURE; LOCAL GOVERNMENT; NUMERICAL MODEL; TAX SYSTEM;

UNITED STATES;

EID: 84857135587     PISSN: 00174815     EISSN: 14682257     Source Type: Journal    
DOI: 10.1111/j.1468-2257.2011.00577.x     Document Type: Article

References (61)

1. Abrams, B., and W. Dougan 1986. The effects of constitutional restraints on government spending. Public Choice 49(2): 101-116.
2. Abreu, M., H.L.F. de Groot, and R.J.G.M. Florax 2005. A meta-analysis of β-convergence: The legendary 2%. Journal of Economic Surveys 19(3): 389-420.
3. Advisory Commission on Intergovernmental Relations (ACIR). 1987. Fiscal discipline in the federal system: National reform and the experience of the states. A-107. Washington, DC.
4. Amiel, L., S.C. Deller, and J. Stallmann 2009. The construction of a tax and expenditure limitation index for the US. Department of Agricultural and Applied Economics Staff Paper No. 536. May. University of Wisconsin-Madison. (accessed January 2, 2012).
5. Arellano, M., and S. Bond 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 58(2): 277-297.
6. Bae, S., and T. Gais 2007. The effects of state-level tax and expenditure limitations on revenues and expenditures. Rockefeller Institute Policy Brief, May 21. State University of New York at Albany. (accessed January 2, 2012).
7. Barro, R.J. 1996. Determinants of economic growth: A cross-country empirical study. National Bureau of Economic Research, Working Paper No. 5698. (accessed January 2, 2012).
8. Bennett, D.G. 1996. Implications of retirement development in high-amenity nonmetropolitan coastal areas. Journal of Applied Gerontology 15(3): 345-360.
9. Bowler, S., and T. Donovan 2004. Evolution in state governance structures: Unintended consequences of state tax and expenditure limitations. Political Research Quarterly 57(2): 189-196.
10. Brock, W., and S. Durlauf 2001. What have we learned from a decade of empirical research on growth? Growth empirics and reality. The World Bank Economic Review 15(2): 229-272.
11. Brock, W., and S. Durlauf, and K. West 2007. Model uncertainty and policy evaluation: Some theory and empirics. Journal of Econometrics 136(2): 629-664.
12. Brown, T. n.d. The effects of TABOR on municipal revenues and spending in Colorado. Colorado Center for Policy Studies, University of Colorado-Colorado Springs. (accessed January 2, 2012).
13. Caselli, F., G. Esquivel, and F. Lefort 1996. Reopening the convergence debate: A new look at cross-country growth regressions. Journal of Economic Growth 1(3): 363-389.
14. Cutler, D.M., D.W. Elmendorf, and R. Zeckhauser 1999. Restraining the leviathan: Property tax limitations in Massachusetts. Journal of Public Economics 71(3): 313-334.
15. Deller, S.C., and V. Lledo 2007. Amenities and rural Appalachia economic growth. Agricultural and Resource Economics Review 36(1): 107-132.
16. Deller, S.C., and J.I. Stallmann 2007. Tax and expenditure limitations and economic growth. Marquette Law Review 90(3): 497-554.
17. Durlauf, S., P. Johnson, and J. Temple 2005. Growth econometrics. In Handbook of economic growth, ed. P. Aghion, and S. Durlauf, 555-677. Amsterdam: North Holland.
18. Durlauf, S., A. Kourtellos, and C.M. Tan 2008. Empirics of growth and development. In International handbook of development economics, ed. A.K. Dutt, and J. Ros, 32-47. Cheltenham, UK: Edward Elgar.
19. Durlauf, S., and D. Quah 1999. The New empirics of economic growth. In Handbook of macroeconomics, ed. J. Taylor, and M. Woodford, 235-308. Amsterdam: North Holland.
20. Dye, R.F., T. McGuire, and D.P. McMillen 2005. Are property tax limitations more binding over time? National Tax Journal 58(2): 215-225.
21. Fraser, A.A. 2005. Colorado's taxpayer's bill of rights should not be breached. The Heritage Foundation Backgrounder #1873. (accessed March 9, 2008).
22. Friedman, M. 1992. Do old fallacies ever die? Journal of Economic Literature 30: 2129-2132.
23. Greene, W.H. 2008. Econometric analysis, 6th ed. Upper Saddle River, NJ: Prentice Hall.
24. Hausmann, R., J. Hwang, and D. Rodrik 2007. What you export matters. Journal of Economic Growth 12(1): 10.
25. Joyce, P.G., and D. Mullins 1991. The changing fiscal structure of the state and local public sector: The impact of expenditure limitations. Public Administration Review 51(3): 240-253.
26. Judge, G.G., R.C. Hill, W.E. Griffiths, H. Lütkepohl, and T.C. Lee 1982. Introduction to the theory and practice of econometrics, 1st ed. New York: John Wiley & Sons. 11 & 620-621.
27. Kornhauser, M.E. 2002. Legitimacy and the right of revolution: The role of tax protests and anti-tax rhetoric in America. Buffalo Law Review 50(Fall): 819-930.
28. Kousser, T., M.D. McCubbins, and E. Moule 2008. For whom the TEL Tolls: Can state tax and expenditure limits effectively reduce spending? State Politics and Policy Quarterly 8(4): 331-361.
29. Ladd, H. 1998. Local government tax and land use policies in the United States. Northhampton, MA: Edward Elgar Publishing.
30. Levine, R., and D. Renelt 1992. A sensitivity analysis of cross-country growth regressions. American Economic Review 82(4): 942-963.
31. Lowery, D., and L. Sigelman 1981. Understanding the tax revolt: Eight explanations. The American Political Science Review 75(4): 963-974.
32. Lynch, R.G. 2004. Rethinking growth strategies: How state and local taxes and services affect economic development. Washington D.C.: Economic Policy Institute (accessed January 2, 2012).
33. McCubbins, M.D., and E. Moule 2010. Making mountains of debt out of molehills: The pro-cycical implications of tax and expenditure limitations. National Tax Journal 63(3): 603-622.
34. McGuire, T.J., and K.S. Rueben 2006. The Colorado revenue limit: The economic effects of TABOR. State Tax Notes, 40(May): 459-473.
35. Minoiu, C., and S.G. Reddy 2010. Development aid and economic growth: A positive long-run. Quarterly Review of Economics and Finance 50(1): 27-39.
36. Moesen, W., and P. Van Cauwenberge 2000. The status of the budget constraint, federalism and the relative size of government: A bureaucracy approach. Public Choice 104: 207-224.
37. Mullins, B.A. 2004. The tax revolt in Massachusetts: Revolution and reason. Public Budgeting and Finance 24(4): 34-50.
38. Mullins, B.A., and D. Wallin 2004. Tax and expenditure limitations: Introduction and overview. Public Budgeting and Finance 24(4): 2-15.
39. New, M.J. 2001. Limiting government through direct democracy: The case of state tax and expenditure limitations, Policy Analysis No.420 (Washington, D.C.: Cato Institute, 2001). (accessed January 2, 2012).
40. Nicholson-Crotty, S., and N. Theobald 2011. Claiming credit in the U.S. federal system: Testing a model of competitive federalism. The Journal of Federalism 41(2): 232-256. Published on-line October 11, 2010.
41. Pack, H. 1994. Endogenous growth theory: Intellectual appeal and empirical shortcomings. Journal of Economic Perspectives 8(1): 55-72.
42. Partridge, M.D. 2005. Does income distribution affect U.S. state economic growth? Journal of Regional Science 45(2): 363-394.
43. Partridge, M.D., and D.S. Rickman 2005. High-poverty nonmetropolitan counties in America: Can economic development help? International Regional Science Review 28(4): 415-440.
44. Partridge, M.D., and D.S. Rickman 2006. The geography of American poverty: Is there a need for place-based policies. Kalamazoo, MI: Upjohn Institute.
45. Phillips, P.C.B., and D. Sul 2003. The Elusive Empirical Shadow of Growth Convergence. Cowles Foundation Discussion Paper no. 1398. (accessed January 2, 2012).
46. Poterba, J.M., and K.S. Rueben 1995. The effect on property-tax limits on wages and employment in the local public sector. The American Economic Review 85(2): 384-389.
47. Poterba, J.M., and K.S. Rueben 1999a. State fiscal institutions and the US municipal bond market. In Fiscal institutions and fiscal performance, ed. J. Poterba, and J. von Hagen, 181-207. Chicago, IL: University of Chicago Press.
48. Poterba, J.M., and K.S. Rueben 1999b. Fiscal rules and state borrowing costs: Evidence from California and other states. San Francisco, CA: Public Policy Institute of California. (accessed January 2, 2012).
49. Poulson, B. 2005. A fiscal discipline report card: Grading the state's tax and expenditure limits. Americans for Prosperity Foundation, Washington DC. (accessed January 2, 2012).
50. Preston, A.E., and C. Ichniowski 1991. A national perspective on the nature and effects of the local property tax revolt, 1976-1986. National Tax Journal 44(2): 123-145.
51. Primo, D.M. 2006. Stop us before we spend again: Institutional constraints on government spending. Economics and Politics 18(3): 269-312.
52. Quah, D. 1993. Galton's fallacy and tests of the convergence hypothesis. Scandinavian Journal of Economics 95(4): 427-443.
53. Sala-i-Martin, X. 1997. "I just ran two million regressions. American Economic Review 87(2): 178-183.
54. Scully, G.W. 2002. Economic freedom, government policy and the tradeoff between equity and economic growth. Public Choice 113(1-2): 77-96.
55. Shadbegian, R.J. 1998. Do tax and expenditure limitations affect local government budgets? Evidence from panel data. Public Finance Review 26(2): 218-236.
56. Shadbegian, R.J. 1999. The effect of tax and expenditure limitations on the revenue structure of local governments, 1962-1987. National Tax Journal 52(2): 221-237.
57. Skidmore, M. 1999. Tax and expenditure limitations and the fiscal relationships between state and local governments. Public Choice 99(1-2): 77.
58. Springer, J.D., A.K. Lusby, J.C. Leatherman, and A.M. Featherstone 2009. An evaluation of alternative tax and expenditure limitation policies on Kansas local governments. Public Budgeting and Finance 29(2, Summer): 48-70.
59. Stallmann, J.I., and S.C. Deller 2010. Impact of state and local tax and expenditure limits on economic growth. Applied Economic Letters 17(7): 645-648.
60. Temple, J. 1999. The new growth evidence. Journal of Economic Literature 37(1): 112-156.
61. Waisanen, B. 2008. State tax and expenditure limits-2008. National Conference of State Legislatures (NCSL). Dec. 2008. (accessed December 29, 2011).