Shows that the standard method for estimating elasticity results in asymptotic bias and inconsistent standard errors. Uses time-series econometric techniques to provide unbiased estimates of the long-run growth potential (the long-run elasticity) and cyclical variability (the short-run...

Previous literature generally finds that greater fiscal decentralization is associated with faster economic growth, improved government performance and stronger constraints on the Leviathan behaviour of governments. Because economic growth critically depends on the presence of good government...

After the US Supreme Court overturned the Affordable Care Act's mandate that states expand Medicaid, roughly half the states have declined to expand. Declining states blame the high state budgetary cost. While these states do have significantly higher expansion costs, they are also significantly...