Mahdavi, Saeid; Westerlund, Joakim - In: Journal of Policy Modeling 33 (2011) 6, pp. 953-969
Most state (and local) governments in the U.S. operate under formal fiscal rules which limit their ability to run budget deficits and resort to debt financing. A priori, one would expect to find evidence in favor of an intertemporally balanced budget, or fiscal sustainability, for these states,...