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The Tax-Spending Nexus: Evidence from a Panel of US State-Local Governments*
| Content Provider | Semantic Scholar |
|---|---|
| Author | Westerlund, Joakim Mahdavi, Saeid Firoozi, Fathali |
| Copyright Year | 2011 |
| Abstract | We re-examine the tax-spending nexus using a panel of 50 US state-local government units between 1963 and 1997. We find that, unlike tax revenues, expenditures adjust to revert back to a long-term equilibrium relationship. The evidence on the short-term dynamics is also consistent with the tax-and-spend hypothesis. One implication of this finding is that the size of the government at the state-local level is not determined by expenditure demand, but rather by resource supply. This is consistent with the fact that many US state and local governments operate under constitutional or legislative limitations that seek to constrain deficits. |
| Starting Page | 885 |
| Ending Page | 890 |
| Page Count | 6 |
| File Format | PDF HTM / HTML |
| DOI | 10.1016/j.econmod.2010.10.016 |
| Volume Number | 28 |
| Alternate Webpage(s) | http://isiarticles.com/bundles/Article/pre/pdf/10890.pdf |
| Alternate Webpage(s) | https://gupea.ub.gu.se/bitstream/2077/21048/1/gupea_2077_21048_1.pdf |
| Alternate Webpage(s) | http://business.utsa.edu/wps/eco/0045ECO-090-2008.pdf |
| Alternate Webpage(s) | https://doi.org/10.1016/j.econmod.2010.10.016 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
