Research Articles

By placing lawmaking power directly in the hands of citizens, Progressive movement reformers hoped to undercut the ability of political parties to pursue their policy objectives. This article tests the expectations of reformers by examining whether direct democracy alters the ability of partisan legislative majorities and governors to shape the size of the U.S. state public sector. Using a large dataset, I estimate the determinants of state tax effort and compare across jurisdictions the effects of variables that measure the partisan control of government. The results demonstrate that while the partisanship of elected officials is an important predictor of tax effort in pure representative jurisdictions, the relationship between party and policy disappears among initiative states. This analysis not only adds to our understanding of U.S. state budgeting, but also suggests the widespread adoption of direct democracy as a possible explanation for the weak party effects observed in studies of state fiscal policy.