Partisanship and Fiscal Policy in Economic Unions: Evidence from US States

Fiscal Policy, Consumption Risk, and Stock Returns: Evidence from US States∗

We find that the consumption risk of investors is lower in states that implement countercyclical fiscal policies. Moreover, firms whose investor base are concentrated in counter-cyclical states have lower stock returns, along with firms that relocate their headquarters to a countercyclical state. Therefore, counter-cyclical fiscal policies lower the consumption risk of investors and consequentl...

Balanced Budget Rules and Fiscal Policy: Evidence from the States

The persistence of fiscal deficits in many industrial democracies has spawned a vast theoretical literature in political economy on why nations run budget deficits, along with a sharp policy debate concerning fiscal institutions that might reduce these deficits. The debate on fiscal institutions, such as proposed balanced budget amendments for the federal government, involves relatively little ...

Economic Geography and Economic Voting: Evidence from the US States

If voters use information about the economy to assess the competence of incumbents, a connection between economic conditions and incumbent success should only be discernable in settings where public policy might plausibly affect the economy, and where the assignment of government responsibility is relatively straightforward. Applying this logic to United States gubernatorial elections, we test ...

Fiscal Policy and Economic Growth in Kenya

The question of whether or not fiscal policy stimulates growth has dominated theoretical and empirical debate for a long time. One viewpoint believes that government involvement in economic activity is vital for growth, but an opposing view holds that government operations are inherently bureaucratic and inefficient and therefore stifles rather than promotes growth. In the empirical literature,...

Monetary Policy, Fiscal Policy, and Aggregate Economic Activity in Korea