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Improving the impact of federal aid to the states


  • Richard H. Mattoon
  • Vanessa Haleco-Meyer
  • Taft Foster


In response to recessions beginning in 1973, 2001, and 2007, the federal government provided financial aid to states with the dual goals of stabilizing state finances and stimulating the economy. The timing of fund provision and the ultimate allocation of funds were often less than optimal. The authors look at how to design a more effective process for starting and stopping state aid.

Suggested Citation

  • Richard H. Mattoon & Vanessa Haleco-Meyer & Taft Foster, 2010. "Improving the impact of federal aid to the states," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q III, pages 66-82.
  • Handle: RePEc:fip:fedhep:y:2010:i:qiii:p:66-82:n:v.34no.3

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    References listed on IDEAS

    1. Richard H. Mattoon & Leslie McGranahan, 2008. "Revenue bubbles and structural deficits: What’s a state to do?," Working Paper Series WP-08-15, Federal Reserve Bank of Chicago.
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    Cited by:

    1. Imtiaz Bhatti & Marvin Phaup, 2015. "Budgeting for Fiscal Uncertainty and Bias: A Federal Process Proposal," Public Budgeting & Finance, Wiley Blackwell, vol. 35(2), pages 89-105, June.

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