The Causes of Fiscal Transparency: Evidence from the American States

TY - UNPB

T1 - The Causes of Fiscal Transparency

T2 - Evidence from the American States

AU - Alt, James E.

AU - Lassen, David Dreyer

AU - Rose, Shanna

PY - 2006

Y1 - 2006

N2 - We use unique panel data on the evolution of transparent budget procedures in the American states over the past three decades to explore the political and economic determinants of fiscal transparency. Our case studies and quantitative analysis suggest that both politics and fiscal policy outcomes influence the level of transparency. More equal political competition and power sharing are associated with both greater levels of fiscal transparency and increases in fiscal transparency during the sample period. Political polarization and past fiscal conditions, in particular state government debt and budget imbalance, also appear to affect the level of transparency

AB - We use unique panel data on the evolution of transparent budget procedures in the American states over the past three decades to explore the political and economic determinants of fiscal transparency. Our case studies and quantitative analysis suggest that both politics and fiscal policy outcomes influence the level of transparency. More equal political competition and power sharing are associated with both greater levels of fiscal transparency and increases in fiscal transparency during the sample period. Political polarization and past fiscal conditions, in particular state government debt and budget imbalance, also appear to affect the level of transparency

M3 - Working paper

BT - The Causes of Fiscal Transparency

PB - Economic Policy Research Unit. Department of Economics, University of Copenhagen

CY - Cph.

ER -