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• W187059890 abstract "This paper provides a direct test of whether the availability of the local voter initiative and recall processes and term limits influences municipal fiscal decisions in the United States. Using an adaptation of Campbell-Mankiw’s (1990) model of forward-looking decision making, I find that the threats of voter initiative and recall do not significantly influence local fiscal policies. This suggests that voter preferences and local fiscal policy are aligned in the absence of these institutions. Term limits lead to increased shortsighted decision making, by removing o!cials’ accountabil ity to voters. This eect is roughly equivalent to removing almost all access to municipal borrowing. The analysis improves upon previous studies of US municipal fiscal policy by utilizing a panel of annual observations of government fiscal choices between 1970 and 2004 for more than 500 local jurisdictions . In doing so, the research design identifies the extent to which cities act according to a rational tax-smoothing model or are short-sighted in their fiscal decision making over time. In addition to term limits, large and diverse populations are associated with short-sighted fiscal policies." @default.
• W187059890 created "2016-06-24" @default.
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• W187059890 date "2009-01-01" @default.
• W187059890 modified "2023-09-24" @default.
• W187059890 title "Direct democracy, term limits, and fiscal decisions in US municipalities" @default.
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