TY  - JOUR
AU  - Poterba,James
TI  - Capital Budgets, Borrowing Rules, and State Capital Spending
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4235
PY  - 1992
Y2  - December 1992
UR  - http://www.nber.org/papers/w4235
L1  - http://www.nber.org/papers/w4235.pdf
N1  - Author contact info:
James M. Poterba
Department of Economics
MIT, E52-350
50 Memorial Drive
Cambridge, MA  02142-1347
Tel: 617/253-6673
Fax: 617/258-7804
E-Mail: poterba@nber.org
AB  - This paper uses cross-section data on the U.S. states to test the hypothesis that budgeting and borrowing rules affect the level and composition of public spending. It employs a 1963 data set with detailed information on state capital budgeting practices to compare capital spending in states that maintain separate budgets for capital and operating expenditures and states that employ a unified budget It also investigates the impact of financing rules, in particular pay-as-you-go rules for capital projects, on the level of spending. States with capital budgets tend to spend more on public capital, especially if they do not impose pay-as-you-go requirements for financing capital projects.
ER  -