2012
DOI: 10.52324/001c.8099
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Economic Growth and Tax and Expenditure Limitations

Abstract: Using a Barro-type empirical growth framework we explore the relationship between tax and expenditure limitations (TELs) and the economic growth of U.S. states. The model uses a panel of annual data for the 50 states from 1990 to 2010, with a variable parameter specification coupled with a dynamic Generalized Method of Moments (GMM) panel estimator. In general, more restrictive tax and expenditure limitations can influence the growth process; however, this relationship varies over levels of income and type of … Show more

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Cited by 22 publications
(48 citation statements)
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“…Research on their containment of spending is somewhat mixed (Kousser, McCubbins, & Moule, 2008; New, 2010), but recent evidence shows that the severity of the limitation may be important in its effectiveness (Kioko, 2011). I use a scale measure developed by Amiel, Deller, and Stallmann (2009) that captures the severity of different TELs based on their growth factors, exemptions, and other criteria. Stronger TEL Severity should contribute to more sound financial management.…”
Section: Research Design and Datamentioning
confidence: 99%
“…Research on their containment of spending is somewhat mixed (Kousser, McCubbins, & Moule, 2008; New, 2010), but recent evidence shows that the severity of the limitation may be important in its effectiveness (Kioko, 2011). I use a scale measure developed by Amiel, Deller, and Stallmann (2009) that captures the severity of different TELs based on their growth factors, exemptions, and other criteria. Stronger TEL Severity should contribute to more sound financial management.…”
Section: Research Design and Datamentioning
confidence: 99%
“…In addition, since the passage of California’s Proposition 13 in the late 1970s, tax and expenditure limitations (TELs) on local governments have become ever more popular. Local TELs imposed by states increased from 29 states in 1969 to 46 states by 2000 (Amiel et al, 2009; Park et al, 2017). For these reasons, avoiding tax increases is an imperative in many of these counties.…”
Section: Resultsmentioning
confidence: 99%
“…Finally, existing empirical studies offer evidence of the role that various fiscal institutions, particularly their strictness, in state fiscal decisions. To capture the strictness of institutional variables relevant to pension finances in the American states, we use the state TEL stringency values calculated by Amiel et al (2009). We expect a negative association between the strictness of state TELs and public pension funding outcomes.…”
Section: Methods Data and Measurementmentioning
confidence: 99%