• Corpus ID: 13784655

On the nature and measurement of fiscal illusion: a survey

  title={On the nature and measurement of fiscal illusion: a survey},
  author={Wallace E. Oates},
In tube extrusion presses, there are two steps in production. Firstly, a mandrel pierces a hole through the center of a billet, the tip of the mandrel ending up just within the opening of the extrusion die. Secondly, the now hollow cylindrical billet is extruded through the die and over and around the tip of the mandrel to produce a tube. To limit the movement of the mandrel, stroke-limiting rods are provided which pass through bores in a part attached to the mandrel and in a fixed part of the… 

An Essay about the Misperception of Public Goods' Costs and Benefits

This paper addresses the different causes of fiscal illusion, as the flypaper effect, debt illusion, renter effect, complexity of the tax system, revenue elasticity, inflation and voters'

Tax Expenditures as An Example of Fiscal Illusion

The identification and estimation of the extent of fiscal illusion in the public finance system seems neces¬sary to ensure the transparency of government activity. A lack of transparency of all the

Fiscal Illusion around the World

This article estimates the magnitude of fiscal illusion around the world and evaluates whether relationships exist between fiscal illusion and a set of potential observed variables. The index of

On the origins and main consequences of fiscal illusion. a short tribute to a big Economist: James Buchanan

This paper analyze the historical origin of Fiscal illusion, and introduce to the contribution of Public Choice and in particular James Buchanan which systematized all these concept in a coherent

Fraccionamiento del poder impositivo

The essay provides support to the hypothesis that financing of provincial public spending through national transferences leads to overspending. We rest on persuasive economic and

The quiet Portuguese: Are Portuguese taxpayers victims of fiscal illusion?

This article discusses the four dimensions generating fiscal illusion through a survey answered by a sample of the population of the northern region of Portugal. The surveyed dimensions were (1) bias

Fiscal Illusion and Fiscal Obfuscation Tax Perception in Sweden

Fiscal illusion refers to “the notion that systematic misperception of key fiscal parameters may significantly distort fiscal choices by the electorate” (Oates 1988, 65). The premise is that the tax

Tax complexity and fiscal illusion: An empirical evaluation on of the Heyndels and Smolders approach

In a pioneering paper on the revenue-complexity hypothesis, Heyndels and Smolders (1995) demonstrate that the conventional employment of the Hirschman-Herfindal index (HHC) in the empirical analysis

Fiscal Illusion in Public Finance: A Theoretical and Empirical Study

Title of Dissertation: FISCAL ILLUSION IN PUBLIC FINANCE: A THEORETICAL AND EMPIRICAL STUDY Frances Louise Lightsey Marshall, Doctor of Philosophy, 1989 Dissertation directed by: Professor Wallace E.

Stability and Growth in Europe: Towards a Better Pact

The fiscal policy framework of the EMU is in a states of crisis. Since the start of EMU, fiscal conditions in some member states have slipped considerably beyond the limits set by the Maastricht




In the recent past numerous and sometimes heated dialogues have taken place regarding the burden of public debt, its existence and its nature. Despite the apparent diversity among the analyses and

Beliefs and errors in voting choices: A restatement of the theory of fiscal illusion

This paper reformulates the theory of fiscal illusion to make it more compatible with the median-voter model of collective choice. It emphasizes the requirement that misperceptions about marginal


This paper deals with the occurrence of fiscal illusion and its effect on public expenditures. Fiscal illusion is here taken to be a systematic misperception by individuals of both the public revenue

The effect of tax elasticity on government spending

Elasticity measures the extent to which a tax structure generates revenue in response to increases in taxpayer income without a change in statutory tax rates. While elasticity depends in part on

Financing the New Federalism: Revenue Sharing, Conditional Grants, and Taxation

this is "one of the less reprehensible approaches to helping that might be undertaken by a corporation" (p. 112, emphasis added). This last statement seems to reflect Neubeck's view that corporations

Fiscal illusion, the nature of public goods and equation specification

In a recent article Richard Wagner (1976) has developed the hypothesis that the structure with which governments raise revenues can affect the level of public expenditures. In addition to providing

Are Government Bonds Net Wealth?

  • R. Barro
  • Economics
    Journal of Political Economy
  • 1974
The assumption that government bonds are perceived as net wealth by the private sector is crucial in demonstrating real effects of shifts in the stock of public debt. In particular, the standard

The Determinants of Median Voter Tax Liability: an Empirical Test of the Fiscal Illusion Hypothesis

A median voter model was constructed, permitting an empirical examination of the determinants of state and local individual tax liability. Holding constant the effect of other factors, a 1% increase

Renters' Illusion or Savvy?

A frequent finding in the local public finance literature is that renters are more likely to support expansions in the local budget than are homeowners. The renters' illusion hypothesis (renters are

The power to tax : analytical foundations of a fiscal constitution

Preface 1. Taxation in constitutional perspective 2. Natural government: a model of Leviathan 3. Constraints on base and rate structure 4. The taxation of commodities 5. Taxation through time: income