QUT ePrints

State expenditure and fiscal illusion in Australia: A test of the revenue complexity, revenue elasticity and flypaper hypotheses

Dollery, Brian E. & Worthington, Andrew C. (1995) State expenditure and fiscal illusion in Australia: A test of the revenue complexity, revenue elasticity and flypaper hypotheses. Economic Analysis and Policy, 25(2), pp. 125-140.

Abstract

Despite the federal structure of its constitution, no empirical study of fiscal illusion at the level of state expenditure has yet been undertaken in Australia. This paper seeks to go at least some way towards remedying the omission by subjecting the revenue-complexity, revenue-elasticity and flypaper hypotheses to pooled time-series, cross-sectional analysis of seven Australian states and territories for the period 1982 to 1992. The results obtained indicate that some support is provided for the revenue-complexity hypothesis, strong evidence exists for the flypaper effect, and virtually no empirical backing was found for the revenue-elasticity hypothesis. These results correspond with earlier work elsewhere on fiscal illusion at the level of the state.

Impact and interest:

Citation countsare sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

Full-text downloads:

221 since deposited on 05 Dec 2005
36 in the past twelve months

Full-text downloadsdisplays the total number of times this work’s files (e.g., a PDF) have been downloaded from QUT ePrints as well as the number of downloads in the previous 365 days. The count includes downloads for all files if a work has more than one.

ID Code: 2793
Item Type: Journal Article
Additional URLs:
Keywords: Fiscal illusion, revenue, complexity, revenue, elasticity, flypaper effect, public choice
ISSN: 0313-5926
Subjects: Australian and New Zealand Standard Research Classification > STUDIES IN HUMAN SOCIETY (160000) > POLITICAL SCIENCE (160600) > Political Science not elsewhere classified (160699)
Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Public Economics- Taxation and Revenue (140215)
Australian and New Zealand Standard Research Classification > STUDIES IN HUMAN SOCIETY (160000) > POLICY AND ADMINISTRATION (160500) > Public Policy (160510)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 1995 The Economics Society of Australia
Deposited On: 05 Dec 2005
Last Modified: 05 Jan 2011 23:26

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page