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.
|Date of creation:||01 Jul 2012|
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- Aizenman, Joshua & Pasricha, Gurnain Kaur, 2011.
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2010-49, Board of Governors of the Federal Reserve System (U.S.).
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The B.E. Journal of Macroeconomics,
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- Ayako Kondo & Justin Svec, 2009. "Fiscal Policy Cyclicality and Growth within the U.S. States," Working Papers 0911, College of the Holy Cross, Department of Economics.
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