Barry W. Poulson

A Rent-Seeking Model of TELs

Tax and expenditure limits or TELs are constitutional or statutory constraints on the fiscal powers of government. Since the taxpayer revolt beginning in the late 1970s, TELs have been introduced in twenty-three states. In recent years a number of studies attempting to test the impact of TELs have found little evidence that TELs significantly reduced the growth of state government. In this study we challenge the implicit Leviathan model that underlies most of these studies, and offer an alternative rent-seeking model. Econometric tests provide support for this rentseeking model, and indicate that TELs have been significant in reducing the growth of state government, at least in the short run.“... the very principle of constitutional government requires it to be assumed, that political power will be abused to promote the particular purpose of the holder; not because it always is so, but because such is the natural tendency of things, to guard against which is the especial use of free institutions”

North America: A case for economic integration

Abstract The recent protectionist trend in trade policy in the United States and other OECD countries is making it more difficult for debtor countries, such as Mexico, to meet their external obligations. In contrast, Mexico and most other debtor nations have adopted more liberal trade policies in recent years. The success of the United States-Canada Free Trade Agreement will expand trading opportunities in the North American economies; however, Mexico is expected to encounter difficulties in competing in this market because of the barriers to trade and investment flows that have existed in the past. This paper discusses the potential impact of a North American Free Trade Agreement on the Mexican economy and the prospects for such an agreement in the current political economy.

Long Swings in the U. S. Economy: A Spectral Analysis of 19th and 20th-Century Data

The results of spectral analytic tests of the long swings hypothesis do not provide a basis for categorically rejecting or accepting the thesis that long swings exist in U.S. data. Irma Aldelmans study concluded that long swings do not exist in U.S. data [2]; Jon Harkness recently presented evidence to support the existence of long swings [12]; Phillip Howrey criticized the Adelman study but reached an agnostic view on the existence of long swings [14]. The position taken in this paper is that none of these studies has provided an adequate test of the long swings hypothesis. We discuss the limitations in these studies and how these limitations can be overcome in terms of the time series utilized, the detrending techniques used to filter the data, and the tests for significance of the spectral estimates. Finally, the results of our spectral analysis are presented as a basis for inferences regarding the existence of long swings in U.S. data.

Surplus Expenditures: A Case Study of Colorado

In this study the concept of surplus expenditures is introduced, and a theory of surplus expenditures is explored. The study examines the disposition of surplus revenues that emerged from the imposition of a binding tax and spending limit in Colorado. The study concludes that the accumulation of surplus revenue requires a major overhaul of budgetary reporting and decision making to reflect the impact of binding tax and spending limits on the budgetary process. The reporting recommendations are designed to make the budget more transparent and provide both taxpayers and legislators the information they need to make more rational decisions. The policy recommendations explore options for a more efficient and equitable disposition of surplus revenue.

Is collective bargaining a collective good

This study argues that legislation imposes on collective bargaining an artificial collective goods characteristic as a legal property, which should be distinguished from collective goods in the economic sense. The law creates an artificial freerider problem. Congressional intent was to require compulsory unionism to the extent that all workers would be required to share in the expenses incurred by the union in the negotiation and administration of collective bargaining agreements. Recent court decisions have attempted to define the obligation of employees, employers, and labor unions in terms of this legislative intent.