Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/22382 
Year of Publication: 
2006
Series/Report no.: 
Finanzwissenschaftliche Arbeitspapiere No. 74
Publisher: 
Justus-Liebig-Universität Gießen, Fachbereich Wirtschaftswissenschaften, Gießen
Abstract: 
This paper analyses the accuracy of the tax projections of West German states from a public choice perspective. It argues that state governments have the possibility and face incentives to manipulate tax projections. Evidence for the years 1992 - 2002 reveals a general upward bias in tax projections in election as well as non-election years. The degree of overestimation is higher, the less popular the incumbent party is. Partisanship and elections have no significant influence. To improve external control of state governments in the budget process, the process of tax projections must be made transparent.
Subjects: 
tax projections
political parties
budget process
public expenditures
JEL: 
D72
H72
Document Type: 
Working Paper

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