Advertisement

Tax reforms and the growth of government

Conference paper
  • 95 Downloads
Part of the Studies in Empirical Economics book series (STUDEMP)

Abstract

This paper analyzes alternative approaches to measuring the effects of structural tax changes on government growth. It first reviews traditional time series approaches that attempt to disentangle the causal relationships between taxes and spending. It explains why these methods are incapable of uncovering the true causal links because of problems of observational equivalence and why institutional data can assist in making this determination. It then presents the methods and results from two alternative approaches and studies that analyze the effects of changes in tax structures on government growth. Both methods rely on econometric and institutional analysis.

Key words

Causality tax reforms government growth 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Advisory Commission on Intergovernmental Relations (1994) Significant features of fiscal federalism, Vol. I. Government Printing Office, WashingtonGoogle Scholar
  2. Attiyeh R, Engle RF (1979) Testing some propositions about proposition 13. National Tax Journal 32:131–146Google Scholar
  3. Barro RJ (1979) On the determination of public debt. Journal of Political Economy 87:940–71CrossRefGoogle Scholar
  4. Bieto DT (1989) Taxpayers in revolt. The University of North Carolina Press, Chapel Hill and LondonGoogle Scholar
  5. Ebel RD, Zimmerman C (1992) Sales tax trends and issues. In: Fox WF (ed.) Sales taxation, Praeger, Westport, Connecticut and London, pp. 3–25Google Scholar
  6. Gramlich EM (1989) Budget deficits and national savings: Are politicians exogenous? Journal of Economic Perspectives 3:23–35CrossRefGoogle Scholar
  7. Haig RM, Shoup C (1934) The sales tax in the American States. Columbia University Press, New York, Morningside HeightsGoogle Scholar
  8. Hartley J, Sheffrin SM, Vasche ID (1996) Reform during crisis: The transformation of Cal-ifornia’s tax system during the great depression. Journal of Economic History, forthcomingGoogle Scholar
  9. Hendry DF (1988) The encompassing implications of feedback vs. feedforward mechanisms in econometrics. Oxford Economic Papers 40:132–49Google Scholar
  10. Higgs R (1987) Crisis and leviathan., Oxford University Press, New York and OxfordGoogle Scholar
  11. Hoover KD, Sheffrin SM (1992) Causation, spending, and taxes: Sand in the sandbox or tax collector for the welfare state? American Economic Review 82:225–248Google Scholar
  12. Sexton TA, Sheffrin SM (1995) Five lessons from tax revolts. State Tax Notes 18:1763–1768Google Scholar
  13. Tax Digest, various issues, 1931–1938, California Los AngelesGoogle Scholar
  14. von Furstenberg GM, Green JR, Jeong J-H (1986) Tax and spend, or spend and tax? Review of Economics and Statistics 68:179–88CrossRefGoogle Scholar
  15. Wallis JJ (1984) The birth of the old federalism: Financing the new deal: 1932–1940. Journal of Economic History 44:139–159CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2000

Authors and Affiliations

  1. 1.Davis College Of Letters and ScienceUniversity of CaliforniaDavisUSA

Personalised recommendations