Working Paper
Restraining the Leviathan: property tax limitations in Massachusetts
Elmendorf, Douglas W.; Cutler, David M.; Zeckhauser, Richard (1997)
We examine the effects of Proposition 2-1/2--a property tax limitation law approved by Massachusetts voters in 1980--and assess voter satisfaction with these effects. We find that the proposition had a smaller effect on local revenues and spending than expected, as a result of both amendments to the law and a strong economy. Voters in 1980 believed there was significant waste in local government, partly because of an inability to monitor local officials. Proposition 2-1/2 curbed these agency losses, but direct local override votes and municipal expenditure patterns imply that the proposition ...
Finance and Economics Discussion Series , Paper 1997-47