학술논문
Spending Within Limits: Evidence From Municipal Fiscal Restraints
Document Type
redif-article
Author
Source
National Tax Association;National Tax Journal, National Tax Journal. 69(2):315-352
Subject
Language
English
Abstract
This paper studies the role of a constitutional rule new to the literature — a limit placed by a city on its own ability to tax or spend. We find that such a limit exists in at least one in eight cities. After limit adoption, municipal revenue growth declines by 13 to 17 percent. Our results suggest that institutional constraints may be effective when representative government falls short of the median voter ideal.