The effect of property tax limitation measures on local government fiscal behavior

Richard F. Dye, Therese J. McGuire*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

67 Scopus citations

Abstract

Previous evidence on the effects of tax and expenditure limitation measures has not been conclusive. Difficulties arise in characterizing differences in fiscal institutions across states, and estimating behavior in the absence of limitation measures. A recently enacted tax limitation measure limits the growth in local property taxes in some Illinois jurisdictions, but not in others. Such differential treatment of otherwise similar jurisdictions provides a natural experiment for estimating the impact of the tax cap on local government fiscal behavior. We find that the cap has been effective in that the fiscal behavior of capped jurisdictions differs from that of never-capped jurisdictions.

Original languageEnglish (US)
Pages (from-to)469-487
Number of pages19
JournalJournal of Public Economics
Volume66
Issue number3
DOIs
StatePublished - Dec 1 1997

Keywords

  • Property tax limitation measures

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'The effect of property tax limitation measures on local government fiscal behavior'. Together they form a unique fingerprint.

Cite this