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Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits

Besley, T., Case, A.·1995·The Quarterly Journal of Economics

Abstract

This paper analyzes the behavior of U. S. governors from 1950 to 1986 to investigate a reputation-building model of political behavior. We argue that differences in the behavior of governors who face a binding term limit and those who are able to run again provides a source of variation in discount rates that can be used to test a political agency model. We find evidence that taxes, spending, and other policy instruments respond to a binding term limit if a Democrat is in office. The result is a fiscal cycle in term-limit states, which lowers state income when the term limit binds.

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Authors
Besley, T., & Case, A.
Venue
The Quarterly Journal of Economics
Published
1995-08-01
Volume
110
Issue
3
Pages
769-798
ISSN
  • 0033-5533 (ISSN-L)
  • 1531-4650
OpenAlex
W2890829820
Cited by
1,044
References
0
FWCI
14.61
Type
journal article
Language
en
Open access
closed

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