Punctuated Equilibria and State Fiscal Policy

If fiscal crisis driven changes in tax and spending policy effectively condition state fiscal choices long after a crisis is over, and if such nonincremental changes are unrelated to the preferences of voters, the political parties that represent them, and the institutions they work through, then how strongly can we assert that the states are paragons of democratic virtue? We explore this implication of the punctuated equilibrium model of state fiscal policy for competing views about the role public preferences, political party control, and political institutions play in directing fiscal choice. We also examine data from the most recent and still on-going fiscal crisis in the states to assess how these political variables have influenced recent decisions on tax and spending policy. We conclude by highlighting a substantial agenda of unfinished work for state politics scholars on core issues of democratic theory