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Article: Fiscal policy, legislature size, and political parties: evidence from state and local governments in the first half of the 20th century.
- Article from:
- National Tax Journal
- Article date:
- March 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 National Tax Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
Institutions--the rules by which decisions are made--have a material affect on government tax and spending policies. That is the consensus view from an emerging empirical literature in public finance. A great deal of evidence has come from the "natural laboratory" of U.S. state and local governments. Studies have taken advantage of the cross-sectional variation in institutional arrangements to document the importance of tax and expenditure limits (Poterba, 1994), budgeting rules (Bohn and Inman, 1996; Poterba, 1994, 1995; Crain and Crain, 1998), legislative structure (Crain and Muris, 1995; Gilligan and Matsusaka, 1995), executive veto (Holtz-Eakin, ...