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Fiscal Illusion and "Excessive" Budgets: Some Indirect Evidence

Author

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  • John G. Cullis

    (University of Bath, England)

  • Philip R. Jones

    (University of Bath, England)

Abstract

The Leviathan literature has, as one of its themes, the manipulation of tax structures to minimize voter perceptions of their tax shares and hence predicts excessive public budgets. Existing confirmatory tests of this proposition, including those published in this journal, have been indirect and concentrated on the tax side of the budget in isolation. Questionnaire evidence on U.K. fiscal knowledge of both expenditure and taxation suggests no overall bias toward pessimistic or optimistic tax illusions but rather general ignorance.

Suggested Citation

  • John G. Cullis & Philip R. Jones, 1987. "Fiscal Illusion and "Excessive" Budgets: Some Indirect Evidence," Public Finance Review, , vol. 15(2), pages 219-228, April.
    • Handle: RePEc:sae:pubfin:v:15:y:1987:i:2:p:219-228
    DOI: 10.1177/109114218701500206
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    References listed on IDEAS

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    5. Borcherding, Thomas E., 1985. "The causes of government expenditure growth: A survey of the U.S. evidence," Journal of Public Economics, Elsevier, vol. 28(3), pages 359-382, December.
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    Cited by:

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    2. Roberto Dell'Anno & Vincenzo Maria De Rosa, 2013. "The Relevance of the Theory of Fiscal Illusion. The Case of the Italian Tax System," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2013(2), pages 63-92.
    3. Andreas Buehn & Roberto Dell’Anno & Friedrich Schneider, 2018. "Exploring the dark side of tax policy: an analysis of the interactions between fiscal illusion and the shadow economy," Empirical Economics, Springer, vol. 54(4), pages 1609-1630, June.
    4. Musharraf Cyan & Jorge Martinez-Vazquez & VIoleta Vulovic, 2013. "Measuring tax effort: Does the estimation approach matter and should effort be linked to expenditure goals?," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1308, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    5. Jones, Philip & Dawson, Peter, 2007. "`Choice' in collective decision-making processes: Instrumental or expressive approval?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(1), pages 102-117, February.

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