This paper provides an empirical assessment of various fiscal discipline mechanisms to determine whether the imposition of these budget rules has been effective at reducing real per capita state and local government expenditures. The primary contribution of this research is its focus on a comprehensive set of fiscal discipline mechanisms which are measured over a relatively long time period. The results of indicate that the more general budgetary institutions such as expenditure limits, term limits and the initiative procedure have led to significant reductions in state and local spending levels while the other, more specific mechanisms have had little significant effect on these expenditures. The authors would like to thank Karen Conway, Edward Lopez, Paul Trogen and Charles Rowley for valuable comments and suggestions.
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