particular, state governments is procyclical, smoothing disposable income and consumption of state residents. This happens over … the cyclical amplitude of state level income movements; although they smooth the idiosyncratic component of shocks to …

We remove the aggregate US-wide component in US state level disposable income and consumption and find that state …-specific consumption exhibits substantially less excess sensitivity to lagged state-specific disposable income than if the aggregate …

We investigate channels of federally provided income insurance for U.S. States, finding that a major part of federal … unemployment benefits are dramatically more efficient in providing income insurance than any other fiscal institution. This finding … suggests that with an appropriately designed income insurance scheme it may be possible to achieve considerable risk sharing in …