Research on state fiscal policies by Mark Crain, Simon Professor of Political Economy, has been featured in the Dec. 10 edition of The Wall Street Journal.
The article, “How to Control State Spending,” looks at ways for state governments to limit budget growth including using the item-reduction veto, which allows a governor to single out a particular item in the budget. Crain’s research on the device has appeared in two journal articles (one was coauthored with Nicole Crain, visiting professor of economics) and in his book, Volatile States: Institutions, Policy, and the Performance of American State Economies (2003).
An excerpt from the article:
Professor Mark Crain of Lafayette College has studied this device, comparing budgets in the 10 states that have it with budgets in the states that don’t. After adjusting for other factors, he estimates that it can limit per capita state spending by as much as 14%.