Legislative Knowledge Networks, Status Quo Complexity, and the Approval of Law Initiatives

Abstract

In this article, we explore the role of legislative knowledge networks (LKN) in the enactment of tax policy in Argentina. Findings show that legislative innovation follows a hierarchical (power law) structure with a few distinct issue areas dominated by key enacted bills. Taxation in Argentina is well described by three main issue areas: the VAT laws, the income tax, and the revenue-sharing legislation. We provide evidence that complexity in the status quo, as described by a larger number of important precedent laws, reduces the likelihood of final approval. Our research departs from existing models of delegation by considering complexity in the status quo rather than complexity in the proposal. We argue that more complex status quo should be accounted for when trying to assess whether legislators draft more or less detailed law initiatives.