Göbel, Jürgen (2009): How can the power of Leviathans be measured?
Download (139kB) | Preview
In certain respects, it seems expedient to describe a government as a homogeneous and self-interested entity, called ’Leviathan’. To optimize fiscal constraints, we need to know how powerful a Leviathan really is. This paper presents a new approach to measure the power of Leviathans. This new approach defines fiscal power in terms of income deviation. It supposes that there exists a positive connection between fiscal power and intergovernmental grants. To examine the approach empirically, we use data on U.S. counties in the period 1999-2002. Equations of fiscal power are estimated on the full and on stratified samples. Overall, the results support the new approach. Nonetheless, further research on the highly significant control variables would be needed to derive recommendations for more efficient fiscal constraints.
|Item Type:||MPRA Paper|
|Original Title:||How can the power of Leviathans be measured?|
|Keywords:||Leviathan; measurement; income deviation; grants|
|Subjects:||H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government
H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H72 - State and Local Budget and Expenditures
H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General
|Depositing User:||Juergen Goebel|
|Date Deposited:||05. Mar 2009 10:33|
|Last Modified:||13. Feb 2013 10:15|
Anand, Sudhir/ Harris, Christopher J. (1994): ”Choosing a Welfare Indicator,” American Economic Review, 84(2), 226-31.
Becker, Gary S. (1975): ”Human Capital,” New York.
Belman, Dale/ Heywood, John S. (2004): ”Public Wage Differentials and the Treatment of Occupational Differences,” Journal of Policy Analysis and Management, 23(1), 135-52.
Bender, Keith A. (1998): ”The central government-private sector wage differential, ” Journal of Economic Surveys, 12(2), 177-220.
Bender, Keith A. (2003): ”Examining equality between public- and privatesector wage distributions,” Economic Inquiry, 41(1), 62-79.
Brennan, Geoffrey/ Buchanan, James M. (1980): ”The Power to Tax - Analytical foundations of a fiscal constitution,” Cambridge University Press.
Disney, Richard F./ Gosling, Amanda (2003): ”A new method for estimating public sector pay premia: evidence from Britain in the 1990s,” CEPR: discussion paper, No. 3787.
Eberts, Randal W./ Gronberg, Timothy, J. (1988): ”Can Competition Amoung Local Governments Constrain Government Spending?” Economic Review (FRB of Cleveland), 24(1), 2-9.
Ehrenberg, Ronald G./ Smith, Robert S. (2009): ”Modern Labor Economics - Theory and Public Policy,” Pearson Education.
Elliott, Robert F./ Bell, David/ Scott, Anthony/ Ma, Ada/ Roberts, Elizabeth (2005): ”Devolved Government and Public Sector Pay Reform: Considerations of Equity and Efficiency,” Regional Studies, 39(4), 519-39.
Forbes, Kevin F./ Zampelli, Ernest M. (1989): ”Is Leviathan a Mythical Beast?” American Economic Review, 79(3), 568-77.
Grossman, Philip J. (1989a): ”Federalism and the Size of Government,” Southern Economic Journal, 55(1), 580-93.
Grossman, Philip J. (1989b): ”Fiscal decentralization and government size: An extension,” Public Choice, 62(1), 63-9.
Grossman, Philip J. (1992): ”Fiscal Decentralization and Public Sector Size in Australia,” The Economic Record, 68, 240-6.
Joulfaian, David/ Marlow, Michael L. (1990): ”Government size and decentralization: Evidence from disaggregated data,” Southern Economic Journal, 56, 1094-102.
Marlow, Michael L. (1988): ”Fiscal Decentralization and Government Size,”Public Choice, 56(3), 159-69.
Melly, Blaise (2005): ”Public-private sector wage differentials in Germany: Evidence from quantile regression,” Empirical Economics, 30, 505-20.
Moss, Milton (ed.) (1973): ”The Measurement of Economic and Social Performance,” National Bureau of Economic Research.
Mueller, Dennis C. (2003): ”Public Choice III,” Cambridge University Press.
Nelson, Michael, A. (1986): ”An empirical analysis of state and local tax structure in the context of the Leviathan model of government,” Public Choice, 49(3), 283-94.
Nelson, Michael A. (1987): ”Searching for Leviathan: Comment and Extension,” American Economic Review, 77(2), 198-204.
Oates, Wallace E. (1985): ”Searching for Leviathan: An Empirical Study,” American Economic Review, 75(4), 748-57.
Oates, Wallace E. (1989): ”Searching for Leviathan: A Reply and Some Further Reflections,” American Economic Review, 79(3), 578-83.
Tiebout, Charles M. (1956): ”A Pure Theory of Local Expenditures,” Journal of Political Economy, 64(5), 416-24.
U.S. Bureau of the Census (2004): ”Compendium of Public Employment: 2002,” 3, Washington, D.C.
U.S. Bureau of the Census (2005): ”Compendium of Government Finances: 2002,” 4(5), Washington, D.C.
U.S. Bureau of the Census (2006): ”2000 Census of Population and Housing,” Washington, D.C.
Zax, Jeffrey S. (1989): ”Is There a Leviathan in Your Neighborhood?” American Economic Review, 79(3), 560-7.