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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Year of publication:	2012-07-01
Authors:	Jonas, Jiri
Institutions:	International Monetary Fund (IMF)
Subject:	Economic recession \| Government expenditures \| Stabilization measures \| Tax collection \| Tax revenues \| Investment \| tax revenue \| state budget \| state budgets \| fiscal policy \| fiscal discipline \| fiscal impact \| tax increases \| fiscal positions \| tax bases \| fiscal rules \| fiscal pressures \| fiscal pressure \| fiscal tightening \| tax policy \| government spending \| tax base \| public finances \| fiscal expenditure \| fiscal outlook \| fiscal deficits \| local government spending \| budget deficit \| fiscal balances \| excessive borrowing \| tax changes \| tax rates \| tax systems \| budget process \| local budgets \| government revenue \| fiscal balance \| fiscal period \| revenue collection \| fiscal gap \| fiscal affairs \| public debt \| budget deficits \| local government expenditures \| fiscal response \| tax collections \| debt obligations \| fiscal stress \| general budget \| fiscal squeeze \| fiscal affairs department \| spending cuts

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IMF Working Papers Number 12/184 4 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010790344