IDEAS home Printed from https://ideas.repec.org/a/taf/rrpaxx/v31y2026i2p125-151.html

Do budget stabilization funds promote pension integrity? The impact of BSF on U.S. State pension contributions

Author

Listed:
  • Eunjoo Choi
  • Seeun (Sen) Ryu

Abstract

This study investigates how the design and size of Budget Stabilization Funds (BSFs) influence U.S. state pension contributions, with implications for fiscal policy and resource allocation. Using panel data from 43 U.S. states (2003–2014) and a dynamic panel model via the Generalized Method of Moments (GMM), the analysis finds that higher BSF reserves and adaptive deposit rule are linked to stronger pension funding. States that tie BSF deposits to revenue or economic volatility contribute 11–12 percentage points more of the Annual Required Contribution (ARC), while those with rigid withdrawal limits contribute 18–19 points less. A one-percentage-point increase in BSF as a share of general fund expenditures corresponds to a 0.2–0.3 percentage-point increase in pension contributions. These findings indicate that adaptable rules and sufficient reserves help states meet long-term obligations under fiscal stress.

Suggested Citation

  • Eunjoo Choi & Seeun (Sen) Ryu, 2026. "Do budget stabilization funds promote pension integrity? The impact of BSF on U.S. State pension contributions," International Review of Public Administration, Taylor & Francis Journals, vol. 31(2), pages 125-151, April.
    • Handle: RePEc:taf:rrpaxx:v:31:y:2026:i:2:p:125-151
    DOI: 10.1080/12294659.2025.2554937
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/12294659.2025.2554937
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/12294659.2025.2554937?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rrpaxx:v:31:y:2026:i:2:p:125-151. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RRPA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.