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Published online by Cambridge University Press: 25 January 2021
It is widely believed that direct democracy, in the form of the initiative, brought about cuts in state taxes and spending over the last quarter century. This belief is based on firsthand observation, case studies, and more than a dozen statistical studies (Matsusaka 2004). Marschall and Ruhil (2005) focus on one of the central issues in this literature: Did the initiative cause this perceived reduction in taxes and spending, or was there some unmeasured factor that led to adoption of the initiative as well as spending and tax cuts?