Fiscal institutional externalities : the negative effects of local tax and expenditure limits on municipal budgetary solvency Benedict S. Jimenez
By: Jimenez, Benedict S
.
Material type: 
ArticlePublisher: 2018Subject(s): TRIBUTOS LOCALES | POLITICA FISCAL | EXTERNALIDADES | PRESUPUESTOS LOCALES | GASTO PUBLICO LOCAL | ESTADOS UNIDOSOnline resources: Click here to access online
In:
Public Budgeting and Finance v. 38, n. 3, Fall 2018, p. 3-31Summary: This study explores the effects of state-imposed local tax and expenditure limits or TELs on the budgetary solvency of city governments in the US. Most local TELs were enacted in the late 1970s and early 1980s, and have remained largely unchanged
in the last three to four decades. These quasi-permanent fiscal institutions do not take into account changes in voters’ fiscal policy preferences across time or the possibility of external fiscal shocks that require flexibility in changing tax and spending policies. Without this flexibility, TELs can lead to poor financial management practices that negatively affect budgetary solvency. The empirical analysis produces strong evidence supporting this argument. Whether TELs are assumed to be exogenously or
endogenously determined, the results of the econometric analysis, including various robustness tests, indicate that TELs weaken city budgetary solvency.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 1716/2018/3-1 (Browse shelf) | Available | OP 1716/2018/3-1 |
Browsing IEF Shelves Close shelf browser
| No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
| OP 1716/2018/2 Public Budgeting and Finance | OP 1716/2018/2-1 Maintaining higher taxes and spending more with the line-item veto | OP 1716/2018/3 Public Budgeting and Finance | OP 1716/2018/3-1 Fiscal institutional externalities | OP 1716/2018/3-2 Use of special assessments by Municipal Governments in the Chicago Metropolitan Area | OP 1716/2018/3-3 Budget reforms in times of austerity | OP 1716/2018/3-4 Why are we lagging behing? |
Disponible también en formato electrónico a través de la Biblioteca del IEF.
Resumen.
Bibliografía.
This study explores the effects of state-imposed local tax and expenditure limits or TELs on the budgetary solvency of city governments in the US. Most local TELs were enacted in the late 1970s and early 1980s, and have remained largely unchanged
in the last three to four decades. These quasi-permanent fiscal institutions do not take into account changes in voters’ fiscal policy preferences across time or the possibility of external fiscal shocks that require flexibility in changing tax and spending policies. Without this flexibility, TELs can lead to poor financial management practices that negatively affect budgetary solvency. The empirical analysis produces strong evidence supporting this argument. Whether TELs are assumed to be exogenously or
endogenously determined, the results of the econometric analysis, including various robustness tests, indicate that TELs weaken city budgetary solvency.
Click on an image to view it in the image viewer
There are no comments for this item.