000			01388pab a2200181 454500
008			180718b2014 xxu||||| |||| 00| 0 eng d
100			_aKwak, Sunjoo
245			_aThe dynamics of state fiscal behavior over the business cycle: Are state fiscal policies procyclical?
260			_c2014
300			_ap.550-574.
362			_aSep
520			_aThe purpose of this study is to examine how cyclical fluctuations in tax revenue affect state fiscal policies, using a state panel data set. In particular, the study develops a measure of revenue gap-the cyclical component of tax revenue-by calculating the orthogonal deviations of tax bases from the trend, and then analyzes its effects on the level of spending and taxation-as measured by expenditure gap and overall tax rate-using a dynamic panel-data model. The analyses reveal that revenue gap is positively related to expenditure gap and negatively to overall tax rate. These results clearly show the procyclical patterns of state fiscal policies and further suggest the association between revenue volatility and fiscal instability. Based on the results, the study discusses the spending stabilization rules as a policy solution to the recurring state fiscal crises. - Reproduced.
650			_aFiscal policy
650			_aBusiness cycles
773			_aAmerican Review of Public Administration
908			_aN
909			_a105882
999			_c105877 _d105877