TY - JOUR
T1 - Intertemporal analysis of state and local government spending
T2 - Theory and tests
AU - Holtz-Eakin, Douglas
AU - Rosen, Harvey S.
AU - Tilly, Schuyler
PY - 1994/3
Y1 - 1994/3
N2 - Do state and local governments smooth their consumption spending across years, or is their spending driven mainly by contemporaneous changes in resources? We design a test to determine which view of state and local spending is more consistent with the data. We find that state and local spending is determined primarily by current (as opposed to permanent) resources. That is, despite their apparent ability to skirt balanced budget laws, states and localities do not typically smooth their expenditures over time.
AB - Do state and local governments smooth their consumption spending across years, or is their spending driven mainly by contemporaneous changes in resources? We design a test to determine which view of state and local spending is more consistent with the data. We find that state and local spending is determined primarily by current (as opposed to permanent) resources. That is, despite their apparent ability to skirt balanced budget laws, states and localities do not typically smooth their expenditures over time.
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U2 - 10.1006/juec.1994.1010
DO - 10.1006/juec.1994.1010
M3 - Article
AN - SCOPUS:0040608198
SN - 0094-1190
VL - 35
SP - 159
EP - 174
JO - Journal of Urban Economics
JF - Journal of Urban Economics
IS - 2
ER -