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A legislative bargaining approach to earmarked public expenditures

Author

Listed:
  • Jeremy J Jackson

    (North Dakota State University)

Abstract

This paper develops a model of legislative spending in which revenues can be spent through earmarks or a general fund. Legislative choice is modeled as a Baron and Ferejohn style legislative bargaining game. The novel approach is to model the bargaining process as a two-stage game reflecting the reality that earmarked expenditures precede general fund appropriations. This drives the result that all revenue is spent by way of earmarking leaving no revenue in the general fund.

Suggested Citation

  • Jeremy J Jackson, 2011. "A legislative bargaining approach to earmarked public expenditures," Economics Bulletin, AccessEcon, vol. 31(3), pages 2006-2020.
    • Handle: RePEc:ebl:ecbull:eb-11-00272
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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P181.pdf
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    Cited by:

    1. Jeremy Jackson, 2013. "Tax earmarking, party politics and gubernatorial veto: theory and evidence from US states," Public Choice, Springer, vol. 155(1), pages 1-18, April.

    More about this item

    Keywords

    Earmarking; legislative bargaining; public goods.;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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