A small, but growing, body of literature searches for evidence of non-Keynesian effects of fiscal contractions. That is, some evidence exists that large fiscal contractions stimulate short-run economic activity. Our paper continues this research effort by systematically examining the effects, if...

The emergence of record current-account and fiscal deficits in the United States during the 1980s draws increasing attention to what has become known as the "twin deficit" problem. Conventional wisdom is that a shift to larger government deficits entails a decline in government saving and...

A small but growing body of literature searches for evidence of non-Keynesian effects of fiscal contractions. That is, some evidence exists that large fiscal contractions stimulate short-run economic activity. This article continues that research effort by systematically examining the effects...

Conventional wisdom suggests that higher government fiscal deficits cause higher (long-term) interest rates. Much empirical work-generally standard ordinary least squares (OLS) regression analysis-has examined this issue and has produced mixed findings. Even if these standard OLS studies...

A small, but growing, body of literature searches for evidence of non-Keynesian effects of fiscal contractions. That is, some evidence exists that large fiscal contractions stimulate short-run economic activity. Our paper continues this research effort by systematically examining the effects, if...

State and local governments have recently experienced severe budget problems. Many state legislatures and governors have cut spending or raised taxes. Such changes in fiscal structure may restore fiscal balance, but they can have adverse consequences on state and local economic growth. This...