Krol, Robert; Svorny, Shirley - In: Public Finance Review 35 (2007) 4, pp. 530-544
Levinson (1998) finds that large states with lenient balanced budget rules experience less cyclical variability. He concludes that state fiscal policy works. However, Levinson's finding is not robust to alternative methods of detrending the data. In addition, the 1984 Advisory Commission on...