This paper addresses the question of whether a government entity can invest money on behalf of employees or constituents in a manner comparable to the private sector. We focus on the experience of pension funds operated by state and local governments on behalf of their employees. Using data from...

This paper examines the effect of rainy day funds (RDFs) on state savings behavior. We find that states with RDFs have higher total balances than states without such funds and also have higher balances after adoption than before adoption. Furthermore, RDF deposits increase total balances...