Munich Personal RePEc Archive

Legislative turnover, fiscal policy, and economic growth: evidence from U.S. state legislatures

Uppal, Yogesh and Glazer, Amihai (2011): Legislative turnover, fiscal policy, and economic growth: evidence from U.S. state legislatures.

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Abstract

An examination of how increased turnover among legislators in the fifty U.S. states affects fiscal policy and economic growth finds that it makes legislators short-sighted. Turnover increases the size of government by increasing the shares of both total spending and taxes in income. In particular, turnover increases capital expenditure and income taxes, both of which may cause long-run distortions in the economy. Further, increased turnover, by resulting in inefficient fiscal policy, reduces long-term economic growth.

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