The high degree of fiscal stress experienced by state governments in the 2001 and the 2007-2009 recessions has prompted renewed discussions of alternative approaches to stabilizing state finances over the business cycle. Prompted by evidence of increased state tax revenue cyclicality in the...

This paper examines the long-term earnings consequences of permanent layoffs initiated during the early 1990s, using a sample of Massachusetts workers who enrolled in Job Training Partnership Act Title III programs, and who remained strongly attached to the state's labor force. The comparison...

While state appropriations are the largest revenue source of the U.S. public university systems, they have declined significantly over the past several decades. Surprisingly, there is little empirical work on the effect of state appropriation cuts on the research productivity of public...

Many regard the 2010–2012 Massachusetts Criminal Offender Record Information (CORI)Reform as a national model to improve ex-offenders' labor market outcomes. This reform prohibits most employers from inquiring about an individual's criminal history on the initial job application (the “ban...

This paper examines how changes in employers' access to job applicants' criminal histories affect ex-offender recidivism. We use extensive state administrative data on individual criminal histories spanning the 2010–2012 Massachusetts Criminal Offender Record Information (CORI) Reform, widely...

Rainy day funds (RDFs) are potentially an important countercyclical tool for states to stabilize their budgets and the overall economy during economic downturns. However, U.S. states have often found themselves exhausting their RDFs and having to raise tax rates or reduce expenditure while still...

We develop a new measure of relative debt transparency by comparing the amount of state debt reported in the annual Census survey and the amount reported in the statistical section of the state Comprehensive Annual Financial Report (CAFR). GASB 44 requires states to start reporting their total...

This paper develops new measures of environmental costs and local revenue capacity (that is, the ability of local governments to raise revenue), in order to form the basis of a new general-purpose aid formula for Massachusetts cities and towns. On the cost side, unlike previous studies, our...

In aggregate, state appropriations are the largest revenue source for public higher education in the United States. However, these appropriations have significantly declined over past decades, drawing serious concerns about the potential negative impact on schools and students. This paper...

This paper designs a new equalization-aid formula based on fiscal gaps of local communities. Using conceptual analysis and simulations with Massachusetts data, the authors illustrate the tradeoffs that policymakers face in deciding on the policy variables in the formula and lay out several...