Restraining the Leviathan: property tax limitations in Massachusetts

David Cutler, Douglas Elmendorf and Richard Zeckhauser

No 1997-47, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We examine the effects of Proposition 2-1/2--a property tax limitation law approved by Massachusetts voters in 1980--and assess voter satisfaction with these effects. We find that the proposition had a smaller effect on local revenues and spending than expected, as a result of both amendments to the law and a strong economy. Voters in 1980 believed there was significant waste in local government, partly because of an inability to monitor local officials. Proposition 2-1/2 curbed these agency losses, but direct local override votes and municipal expenditure patterns imply that the proposition initially reduced spending more than voters wanted.

Keywords: Property tax; Massachusetts (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Restraining the Leviathan: property tax limitation in Massachusetts (1999)
Working Paper: Restraining the Leviathan: Property Tax Limitation in Massachusetts (1997)
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