Great Recession and Fiscal Squeeze at U.S. Subnational Government Level
The paper discusses the fiscal impact of the Great Recession of 2007-08 on state and local governments in the United States. It documents the sharp decline in tax revenue and discusses how states responded to close the budget gaps in order to obey the balanced budget provisions. It highligts the procyclical nature of this policy response, provides a brief comparison with subnational policy stances in other advanced economies, and discusses some options for making subnational fiscal policy less procyclical within the framework of current rules.
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- Ayako Kondo & Justin Svec, 2009.
"Fiscal Policy Cyclicality and Growth within the U.S. States,"
0911, College of the Holy Cross, Department of Economics.
- Svec Justin & Kondo Ayako, 2012. "Fiscal Policy Cyclicality and Growth within the US States," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(2), pages 1-35, March.
- James M. Poterba, 1996. "Do Budget Rules Work?," NBER Working Papers 5550, National Bureau of Economic Research, Inc.
- Byron Lutz & Raven Molloy & Hui Shan, 2010.
"The housing crisis and state and local government tax revenue: five channels,"
Finance and Economics Discussion Series
2010-49, Board of Governors of the Federal Reserve System (U.S.).
- Lutz, Byron & Molloy, Raven & Shan, Hui, 2011. "The housing crisis and state and local government tax revenue: Five channels," Regional Science and Urban Economics, Elsevier, vol. 41(4), pages 306-319, July.
- Joshua Aizenman & Gurnain Kaur Pasricha, 2011.
"Net Fiscal Stimulus During the Great Recession,"
NBER Working Papers
16779, National Bureau of Economic Research, Inc.
- Aizenman, Joshua & Pasricha, Gurnain Kaur, 2011. "Net Fiscal Stimulus During The Great Recession," Santa Cruz Department of Economics, Working Paper Series qt8df5z6j8, Department of Economics, UC Santa Cruz.
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