TY  - JOUR
AU  - Holtz-Eakin,Douglas
AU  - Rosen,Harvey S.
AU  - Tilly,Schuyler
TI  - Intertemporal Analysis of State and Local Government Spending:  Theory ad Tests
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4261
PY  - 1994
Y2  - May 1994
UR  - http://www.nber.org/papers/w4261
L1  - http://www.nber.org/papers/w4261.pdf
N1  - Author contact info:
Douglas Holtz-Eakin
American Action Forum
1401 New York Ave, NW
Suite 1200
Washington, DC 20005
E-Mail: dholtzeakin@americanactionforum.org

Harvey S. Rosen
Department of Economics
Fisher Hall
Princeton University
Princeton, NJ 08544-1021
Tel: 609/258-4022
Fax: 609/258-6419
E-Mail: HSR@princeton.edu
AB  - Do state and local governments smooth their consumption spending across years, or is their spending driven mainly by contemporaneous changes in resources? We design a test to determine which view of state and local spending is more consistent with the data. We find that state and local spending is determined primarily by current (as opposed to permanent) resources. That is, despite their apparent ability to skirt balanced budget laws, states and localities do not typically smooth their expenditures over time.
ER  -