Arbeitspapier

Legislative term limits and state aid to local governments

We estimate the effect of legislative term limits on various categories of state government spending using the most recent panel of 47 states from 1972 to 2005. Besides the usual economic, political, fiscal and demographic factors, we also control for the state tax and expenditure limitations. We find that term limits have a significant positive effect on total state government spending, but no significant positive effect on state education, health, transportation or welfare expenditures. This dichotomy in the estimates raises a very important and previously overlooked question: what budget category is responsible for higher state spending in term-limited states? Our analysis reveals that legislative term limits increase pork-barrel spending, which takes the form of higher transfers from state to local governments. This finding might also imply that legislative term limits lead to more fiscal decentralization.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 6456

Klassifikation
Wirtschaft
Thema
term limits
pork-barrel spending
rent-seeking
transportation
welfare
education
health
intergovernmental aid and transfers
Regierung
Dauer
Finanzausgleich
Finanzföderalismus
Öffentliche Ausgaben
USA

Ereignis
Geistige Schöpfung
(wer)
Yakovlev, Pavel
Tosun, Mehmet S.
Lewis, William P.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2012

Handle
URN
urn:nbn:de:101:1-20120716936
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Yakovlev, Pavel
  • Tosun, Mehmet S.
  • Lewis, William P.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2012

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