Follette, Glenn; Kusko, Andrea; Lutz, Byron - Federal Reserve Board (Board of Governors of the … - 2009
We examine the interplay of the economy and state and local budgets by developing and examining two measures of fiscal policy: the high-employment budget and fiscal impetus. We find that a 1 percentage point increase in cyclical GDP results in a 0.1 percentage point increase in NIPA-based net...