regions, coupled with increased expenditure demands, led to substantial state budget deficits. State fiscal institutions, such … of fiscal adjustment to unexpected deficits. Political factors are also important. When a single party controls the state … house and the governorship, the reaction to state deficits is much faster than when party control is divided. In …

deficits in the state's general fund. Balanced budget limitations may be either prospective or beginning … is saved in a state `rainy day' fund in anticipation of future general fund deficits. In contrast, prospective … constraints `force' deficits into other fiscal accounts …

sustainability. Disclosure of nontraditional debt would imply significant welfare gains for the recipient countries but would reduce … its sustainability. We discuss the implications of nontraditional lending on standard assumptions of sovereign debt models …

fiscal deficits emerge. This suggests that changing the federal budget process has the potential to affect federal fiscal …

What determines the sustainability of sovereign debt? We develop a model where myopic governments seek popularity but …