Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107221
Authors: 
Zhao, Bo
Coyne, David
Year of Publication: 
2013
Series/Report no.: 
Working Papers, Federal Reserve Bank of Boston 13-18
Abstract: 
This paper develops a new measure of state and local fiscal sustainability called the "trend gap," which is based on socioeconomic and other fundamental factors and removes the short-term influence of the business cycle. The paper estimates the trend gap and finds that the nationwide per capita trend gap has been on a growing path over the past three decades, a different conclusion than found in previous studies. Social insurance and income maintenance programs have played a major role in the growth of the trend gap, while pension and other post-employment benefits (OPEB) plans have become increasingly important in driving it up. In addition, there are large and growing disparities in the trend gap across states.
Subjects: 
fiscal sustainability
state and local fiscal trends
JEL: 
H4
H7
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.