Legislative Term Limits and Fiscal Policy Performance

Do term limits impede the ability of legislators to effectively set fiscal policy? To address this question, I examine state bond ratings from 1996 to 2009. Bond ratings serve as a valuable indicator of a state's fiscal performance, gauging the risk and uncertainty that investors face when buyi...

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Bibliographic Details
Published in:	Legislative studies quarterly Vol. 37; no. 3; pp. 305 - 328
Main Author:	LEWIS, DANIEL C.
Format:	Journal Article
Language:	English
Published:	Malden, USA Blackwell Publishing Inc 01-08-2012 COMPARATIVE LEGISLATIVE RESEARCH CENTER OF THE UNIVERSITY OF IOWA
Subjects:	Bond rating Bonds Economic models Economic performance Fiscal Policy Government budgets Government corruption Government spending Indexes (Measures) Interest Rate Legislative behaviour Legislators P values Political parties Rating Revenue Risk State politics Term Limits Uncertainty
Online Access:	Get full text
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Summary:	Do term limits impede the ability of legislators to effectively set fiscal policy? To address this question, I examine state bond ratings from 1996 to 2009. Bond ratings serve as a valuable indicator of a state's fiscal performance, gauging the risk and uncertainty that investors face when buying these bonds. In addition, bond ratings are important policy ends in themselves. High bond ratings make it easier for states to borrow and raise revenue, while lowering interest rates. Results from analyses of "Term-Limitedness" and legislator experience suggest that term limits negatively impact a state's fiscal performance, leading to lower bond ratings.
Bibliography:	ArticleID:LSQ49 ark:/67375/WNG-TPK53NLG-C istex:13ACD917E166A00C2385474600BE57C283A322ED ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 23 ObjectType-Article-2 ObjectType-Feature-1
ISSN:	0362-9805 1939-9162
DOI:	10.1111/j.1939-9162.2012.00049.x