Shon, Jongmin and Kwak, Sunjoo
Horizontal and vertical interactions in local fiscal slack:A spatial analysis of local governments in New York state - Local Government Studies - 50(5), Oct, 2024: p.939-964
With the recurring economic crises, the literature on fiscal savings behaviour has expanded its scope from state governments relying on budget stabilisation or rain-day funds to local governments mainly using general fund balances. While many studies have explored the determinants of local savings behaviour, few have taken fiscal interactions among local governments into account. To fill out this gap, this study explores whether spatial interdependence in fiscal slack exists horizontally between counties and vertically across counties and municipalities through the unreserved fund balance of local governments in New York State from 1996 to 2016. The empirical findings indicate that horizontal interdependence in fiscal slack among county governments exists in the short-run, while vertical interdependence is observed across counties and municipalities in the long-run.- Reproduced
https://www.tandfonline.com/doi/full/10.1080/03003930.2023.2258796
Local fiscal slack, Unreserved fund balance, Fiscal interdependence, Horizontal and vertical fiscal interactions, Spatial analysis.
Horizontal and vertical interactions in local fiscal slack:A spatial analysis of local governments in New York state - Local Government Studies - 50(5), Oct, 2024: p.939-964
With the recurring economic crises, the literature on fiscal savings behaviour has expanded its scope from state governments relying on budget stabilisation or rain-day funds to local governments mainly using general fund balances. While many studies have explored the determinants of local savings behaviour, few have taken fiscal interactions among local governments into account. To fill out this gap, this study explores whether spatial interdependence in fiscal slack exists horizontally between counties and vertically across counties and municipalities through the unreserved fund balance of local governments in New York State from 1996 to 2016. The empirical findings indicate that horizontal interdependence in fiscal slack among county governments exists in the short-run, while vertical interdependence is observed across counties and municipalities in the long-run.- Reproduced
https://www.tandfonline.com/doi/full/10.1080/03003930.2023.2258796
Local fiscal slack, Unreserved fund balance, Fiscal interdependence, Horizontal and vertical fiscal interactions, Spatial analysis.