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A test of the institutionally-induced equilibrium hypothesis: on the limited fiscal impact of two celebrity governors

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  • Roger D. Congleton

    (West Virginia University)

  • Yang Zhou

    (West Virginia University)

Abstract

The governorships of Jesse Ventura of Minnesota and Arnold Schwarzenegger of California provide two natural experiments for testing the institutionally induced stability hypothesis. Both men rose to their governorships through unique career and electoral paths that would reduce the stabilizing effects of partisan commitments and electoral competition, which would tend to increase their impact on public policy. Nonetheless, our evidence suggests that despite their unique backgrounds and paths to office neither governor had a statistically significant impact on their state’s expenditures or deficits.

Suggested Citation

  • Roger D. Congleton & Yang Zhou, 2019. "A test of the institutionally-induced equilibrium hypothesis: on the limited fiscal impact of two celebrity governors," Economics of Governance, Springer, vol. 20(2), pages 103-128, June.
    • Handle: RePEc:spr:ecogov:v:20:y:2019:i:2:d:10.1007_s10101-018-0218-z
    DOI: 10.1007/s10101-018-0218-z
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    Cited by:

    1. Yang Zhou, 2022. "Economic institutions and horizontal checks and balances in the Chinese bureaucratic system: evidence at the prefecture-city level," Economics of Governance, Springer, vol. 23(2), pages 133-160, June.
    2. Peter Calcagno & Alexander Marsella & Yang Zhou, 2024. "Income inequality and party alternation: State‐level evidence from the United States," Contemporary Economic Policy, Western Economic Association International, vol. 42(2), pages 355-374, April.
    3. Roger D. Congleton, 2019. "Fiscal Bargaining and the Implicit Fiscal Constitutions of Liberal Democracies: A Public Choice Perspective," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 15(2), pages 175-198, December.

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    More about this item

    Keywords

    Government experience; Natural experiment; Outsidership; Governor; Fiscal policy; Minnesota; Jesse Ventura; California; Arnold Schwarzenegger;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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