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Do parties matter? Yes, but not in the usual way we tend to think of them: big government Democrats and small government Republicans. Our first regression discontinuity design shows that whether the majority in the House of Representatives is Republican or Democratic does not affect the tax...
Persistent link: https://www.econbiz.de/10008519862
With a regression discontinuity design I show that the partisan identity of the majority in the state House of Representatives has no causal effect on the tax level. This result goes against recent findings in the political economy literature. In the state Senate I find a significant...
Persistent link: https://www.econbiz.de/10009188408
We find the surprising result that the tax level is negatively correlated with the size of the Democratic majority in the interval in which the Democrats hold between 50 and 66% of the seats in the state Legislatures. This negative relationship suggests the failure of a simple ideological model...
Persistent link: https://www.econbiz.de/10008677575
We estimate a non-linear and discontinuous relationship between the tax level and the degree of alignment between the legislature and the governor, measured as the number of seats in the legislature that belong to the governor’s party. In the states with the line-item veto, there is a jump in...
Persistent link: https://www.econbiz.de/10011096344