Compounding the Loop: Fiscal Constraints, Economic Volatility, and Policy

摘要: As the United States begins to emerge from worst economic decline since Great Depression, many questions are still left unanswered. One fact seems allude most of main stream discussion — impact this recession on individual American states has not been uniform. Some have fared much better than others. explanation for lies in specific fiscal institutions that adopted over last 220 years. My work examines three state balanced budget rules, super-majority voting requirements, and tax expenditure limitations their impacts economies, specifically regards revenue volatility. Growth is common measure success. However, there a growing literature argues volatility, or risk, economies equally important. By following neo-institutional approach I deviate current behavioralist political economy. looks at 49 (Nebraska dropped) 37 year period (1969-2005) asses how volatility economies. What find with strict rules tend lower levels while requirements higher