Factors that influence the level of underground government

Two econometric models of off-budget spending or 'underground government' are developed using state data. Using the models, the hypotheses of Bennett and DiLorenzo (BD), and Marlow and Joulfaian (MJ), are tested. BD argue that off-budget spending is an end-run around voter-approved limitations on spending, taxation and debt while MJ contend that high levels of off-budget spending exist for the same reasons as high levels of on-budget spending. Results suggest that substitution of on-budget spending by off-budget spending is short-lived and that they may be complementary in the long term. Further research is needed.
Suppose you're an average politician. You're frustrated by the budget deficits. They limit government spending on your deserving constituents. There's constant pressure to raise taxes. Your job isn't any fun. [...]