In 23 American states, citizens can initiate and approve laws by popular vote; in the other 27 be proposed only elected representatives. This paper compares fiscal behavior of state local governments over last 30 years under these two institutional arrangements. The main finding is that spending significantly lower, on order 4 percent, states with voter initiatives than pure representative states. It also found higher lower initiative On revenue side, rely less broad-based taxes more charges...

▪ Abstract Until recently, direct democracy scholarship was primarily descriptive or normative. Much of it sought to highlight the processes' shortcomings. We describe new research that examines from a more scientific perspective. organize discussion around four “old” questions have long been at heart debate: Are voters competent? What role does money play? How affect policy? Does benefit many few? find recent breakthroughs in theory and empirical analysis paint comparatively positive...

The purpose of this essay is to describe the practice and theory increasingly important political phenomenon direct democracy main lessons from scholarly literature. Many questions remain be answered, but emerging view that works--allowing general public participate in lawmaking often seems improve performance government.

This article examines the stock market response to acquisition announcements during and immediately after conglomerate merger wave of late 1960s. The main finding is that acquirer shareholders benefited from diversification acquisitions, which implies was not driven by managerial objectives. It also shown responded positively bidders who retained management target companies negatively replaced management. consistent with hypothesis favored acquisitions intended exploit synergies. suggests...

This article develops a dynamic model of firm in which diversification can be value‐maximizing strategy even if specialization is generally efficient. The central idea that firms are composed organizational capabilities profitable multiple businesses and search process by seek good matches for their capabilities. theory account diversified trading at discounts compared to single‐segment firms, as well some empirical regularities challenging the agency diversification, such positive returns...

If consumers become pessimistic about the state of economy, can there be a slowdown in output, even if their pessimism is not based on economic fundamentals? Recent macroeconomic models show answer yes, are “strategic complementarities” and multiple equilibria. We investigate link between consumer confidence fluctuations using vector autoregressions. In all models, after controlling for fundamentals, hypothesis that sentiment does cause GNP (in Granger sense) rejected. Variance...

This article studies voting behavior on 16 environmental ballot propositions in California order to characterize the demand for goods. The environment is found be a normal good people with mean incomes, but some goods are inferior those high at least when supplied collectively. An important "price" of reduced income construction, farming, forestry, and manufacturing industries. Income price can explain most variation voting; there little need introduce "preference" variables such as...

Direct democracy continues to grow in importance throughout the United States. Citizens are increasingly using initiatives and referendums take law into their own hands, overriding elected officials set tax, expenditure, social policies. John G. Matsusaka's For Many or Few studies a century of budget data from states cities provide first comprehensive, empirical picture how direct is changing government policies.Matsusaka argues against popular belief that empower wealthy special interest...

Journal Article Political Resource Allocation: Benefits and Costs of Voter Initiatives Get access John G. Matsusaka, Matsusaka Search for other works by this author on: Oxford Academic Google Scholar Nolan M. McCarty The Law, Economics, Organization, Volume 17, Issue 2, 1 October 2001, Pages 413–448, https://doi.org/10.1093/jleo/17.2.413 Published: 01 2001

The quality of government is often measured by the degree congruence between policy choices and public opinion, but there not an accepted method for calculating congruence. This paper offers a new approach to measuring policy-opinion congruence, uses it study 10 high-profile issues across 50 states. For examined, states chose preferred majority citizens (equivalent median voter outcome) 59 percent time — only 9 more than would have happened with random policymaking. Majoritarian/median...

This paper investigates the determinants of state spending over 1960—1990. Recent empirical studies suggest that government expenditure is greater than electorate desires. Our main finding was positively related to number seats in a state's legislature. consistent with hypothesis logrolling leads representatives spend more their constituents would like. We also find political parties do not have pronounced effect on overall levels expenditure, but influence composition spending. In...

Journal Article Economics of Direct Legislation Get access John G. Matsusaka University Southern California Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Economics, Volume 107, Issue 2, May 1992, Pages 541–571, https://doi.org/10.2307/2118481 Published: 01 1992

This paper compares the fiscal policy of initiative and noninitiative states in first half twentieth century. States with initiatives had higher combined state local expenditure after controlling for income other demographics but a lower ratio to expenditure. This, together existing evidence from later century, suggests that voter does not have consistent effect on overall size government. However, it systematically lead more decentralized

This paper tests whether state and local fiscal policy depended on the number of seats in legislature first half 20th century. We find that large legislatures spent more, as implied by "Law 1/n" from commons/logrolling literature. The same relation appears latter century, therefore seems to be systematic. also find—again consistent with postwar evidence—that only size upper house was important. are unable robust evidence expenditure partisan makeup legislature.

Abstract This paper investigates whether labor unions use proposals opportunistically to influence contract negotiations. Our empirical strategy relies on the observation that have higher bargaining-chip value in expiration years, when a new must be negotiated. We find years compared with nonexpiration increase their proposal rate by one-fifth, particularly concerning executive compensation. Union made during are less likely supported other shareholders or leading proxy advisor; market...