Cover IMF Working Papers
Great Recession and Fiscal Squeeze at U.S. Subnational Government Level
Author: Jiri Jonas
Series:
IMF Working Papers
Volume/Issue:
Volume 2012: Issue 184
Language:
English
Publication Date:
01 Jul 2012
DOI:
https://doi.org/10.5089/9781475505320.001
ISBN:
9781475505320
ISSN:
1018-5941
Pages:
40
Keywords:
WP; government; country; local government; state government; State budget; Fiscal policy; tax policy; local government finance; budget gap; property tax; job statistic; State tax collection; tax receipt; net government lending; government supplier; State nominal; local government employment; bond yield; Budget planning and preparation; Tax collection; Global financial crisis of 2008-2009; Subnational tax
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The paper discusses the fiscal impact of the Great Recession of 2007-08 on state and local governments in the United States. It documents the sharp decline in tax revenue and discusses how states responded to close the budget gaps in order to obey the balanced budget provisions. It highligts the procyclical nature of this policy response, provides a brief comparison with subnational policy stances in other advanced economies, and discusses some options for making subnational fiscal policy less procyclical within the framework of current rules.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund