Computing the Extent of Circumvention of Proposition 13: A Response

American Economic Journal of Economics and Sociology, Forthcoming

8 Pages Posted: 30 Dec 2009

See all articles by Gary M. Galles

Gary M. Galles

Pepperdine University

Robert L. Sexton

Pepperdine University - Economics Department

Date Written: December 29, 2009

Abstract

Galles and Sexton (1998) showed that California state and local revenues exceeded their previous real per capita levels as did the sum of property taxes plus charges and miscellaneous revenues within a decade after Proposition 13 passed, and concluded that Proposition 13 was only temporarily successful at shrinking California state and local governments. Khoury and Pal (2000) challenge this conclusion. However, their conclusion that Proposition 13’s circumvention “has been only marginal” results from using per $1000 of income comparisons rather than real per capita comparisons and from using growth rate changes, which fail to adjust for U.S. fiscal trends, instead of changes in the levels of variables as their primary measure.

Suggested Citation

Galles, Gary and Sexton, Robert L., Computing the Extent of Circumvention of Proposition 13: A Response (December 29, 2009). American Economic Journal of Economics and Sociology, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1529409

Gary Galles

Pepperdine University ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States
310-456-4250 (Phone)
310-317-7271 (Fax)

Robert L. Sexton (Contact Author)

Pepperdine University - Economics Department ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States

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