Concerns about devolving environmental regulatory powers to lower levels of government permeate debates in the U.S. and Europe about the appropriate level of regulatory authority. In theory, given a long list of conditions, regulatory competition by local governments can be efficient in the same...

We examine the effect of the Earned Income Tax Credit (EITC) on labor supply, comparing outcomes in Wisconsin, which supplements the federal EITC for families with three children, to outcomes in states that do not supplement the federal EITC. Relative to previous studies, our cross–state...

This paper presents evidence that stringent balanced budget requirements enforced in some U.S. states have exacerbated business cycles in those states. The effect is not apparent directly. However, among states where fiscal policy may have more macroeconomic consequences (large states), the...

This paper examines the effect of rainy day funds (RDFs) on state savings behavior. We find that states with RDFs have higher total balances than states without such funds and also have higher balances after adoption than before adoption. Furthermore, RDF deposits increase total balances...