The determinants of off-budget activity of state and local governments
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.Get Access
The primary finding of this paper is that the off-budget activity of the public sector is significantly and positively related to on-budget activity by state and local governments. We suggest the following policy implications. One, there appears to be evidence that the composition of total government activity is related to the relative costs of the alternative avenues of providing governmental activity. Future research into determining the nature of the relative cost differences may be one useful means of understanding both the composition of government activity as well as its total size. Two, our ability to measure the “true” size of public sector participation in the economy must go well beyond our attempt here. While we have presented information on one of the important “hidden” elements of public sector participation, we are still a long way from effectively incorporating similar data on legislation, regulations and so forth into our empirical tests. Further research into these issues is clearly warranted.
- Abrams, B.A. and Dougan (1986). The effects of constitutional constraints on governmental spending. Public Choice 49: 101–116.
- Bails, D. (1982). A critique of the effectiveness of tax-expenditure limitations. Public Choice 38: 129–138.
- Bennett, J.T. and Johnson, M.H. (1980). The political economy of federal government growth: 1959–1978. College Station, TX: Center for Education and Research in Free Enterprise.
- Bennett, J.T. and DiLorenzo, T.J. (1982). Off-budget activities of local government: The bane of the tax revolt. Public Choice 39: 333–342.
- Bordo, M.D. and Landau, D. (1987). The growth of government: A protection explanation. Public Choice 53: 167–174.
- Buchanan, J.M. and Flowers, M. (1969). An analytic setting for a ‘taxpayers’ revolution. Western Economic Journal 8: 349–359.
- Buchanan, J.M. and Wagner, R.E. (1977). Democracy in deficit: The political legacy of Lord Keynes. New York: Academic Press.
- Breeden, C.H. and Hunter, W.J. (1985). Tax revenue and tax structure. Public Finance Quarterly 13 (April): 216–224.
- Crain, W.M., Tollison, R.D., Goff, B.L. and Carlson, D. (1985). Legislator specialization and the size of government. Public Choice 46: 311–315.
- Feenberg, D.R. and Rosen, H.S. (1987). Tax structure and public sector growth. Journal of Public Economics 32: 185–201.
- Friedman, M. (1978). Tax limitation, inflation and the role of government. Dallas: The Fisher Institute.
- Higgs, R.R. (1985). Crises, bigger government and ideological change. Explorations in Economic History 22: 1–28.
- Logan, R.R. (1986). Fiscal illusion and the grantor government. Journal of Political Economy 96: 1304–1318.
- Manage, N. and Marlow, M.L. (1986). The causal relation between federal expenditures and receipts. Southern Economic Journal 52: 617–629.
- Marlow, M.L. (1986). Private sector shrinkage and the growth of industrialized economies. Public Choice 49: 143–154.
- Marlow, M.L. and Manage, N. (1987). Expenditures and receipts: Testing for causality in state and local government finances. Public Choice 53: 253–255.
- Marlow, M.L. and Orzechowski, W. (1988). Controlling Leviathan through tax reduction. Public Choice 58: 237–246.
- Marlow, M.L. (1988). Political incentives, balanced budget rules and the size of government. Presented at the 1988 public choice meetings in San Francisco, CA.
- Meltzer, A.H. and Richards, S.F. (1983). Tests of a rational theory of government. Public Choice 41: 403–418.
- Misiolek, W.S. and Elder, H.W. (1988). Tax structure and the size of government: An empirical analysis of the fiscal illusion and fiscal stress arguments. Public Choice 57: 233–247.
- Niskanen, W.A. (1971). Bureaucracy and representative government. Chicago: Aldine-Atherton.
- Nutter, G.W. (1978). Growth of government in the west. Washington, DC: American Enterprise Institute.
- Olson, M. (1982). The rise and decline of nations. New Haven: Yale University Press.
- Pommerehne, W.W. and Schneider, F. (1978). Fiscal illusion, political institutions, and local public spending. Kyklos 31: 381–408.
- Shughart, W.F. and Tollison, R.D. (1986). On the growth of government and the political economy of legislation. Research in Law and Economics 9: 111–127.
- Stein, R.M., Hamm, K.E. and Freeman, P.K. (1983). An analysis of support for tax limitation referenda. Public Choice 40: 187–194.
- Toma, M. and Toma, E.F. (1980). Bureaucratic response to tax limitation amendments. Public Choice 35: 333–348.
- U.S. Department of Commerce. (1980, October). Bureau of the Census, Governmental finances in 1978–1979.
- U.S. Department of Commerce. (1985a). BEA Staff Paper 42, Experimental estimates of gross state product by industry.
- U.S. Department of Commerce. (1985b). Bureau of the Census, Governmental finances in 1983–1984.
- U.S. Department of Commerce. (1987, December). Bureau of the Census, Statistical abstract of the United States 1988.
- U.S. Department of Commerce. (1988, May). Bureau of Economic Analysis, Survey of current business.
- Wagner, A. (1893). Grundlegung der politischen Ökonomie. Leipzig.
- Weede, E. (1984). Democracy, creeping socialism, and ideological socialism in rent-seeking societies. Public Choice 44: 349–365.
- Winer, S.L. (1983). Some evidence on the effect of the separation of spending and taxing decisions. Journal of Political Economy 91: 126–140.
- The determinants of off-budget activity of state and local governments
Volume 63, Issue 2 , pp 113-123
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- Industry Sectors