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Institutions and Fiscal Sustainability

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  • Rose, Shanna

Abstract

As budgetary commitments outpace current revenues and long-term liabilities balloon, the fiscal sustainability of state and local governments is a matter of mounting concern. Over the years, these governments have experimented with a wide variety of political and fiscal institutions, ranging from direct democracy to balanced budget rules, with the goal of slowing the growth of government and increasing financial responsibility. This article synthesizes the related empirical literature, summarizing what we know (and don’t know) about the effectiveness of various rules and procedures in promoting fiscal sustainability.

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  • Rose, Shanna, 2010. "Institutions and Fiscal Sustainability," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(4), pages 807-837, December.
    • Handle: RePEc:ntj:journl:v:63:y:2010:i:4:p:807-37
    DOI: 10.17310/ntj.2010.4.11
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