We study whether and how fiscal restrictions alter the business cycle features of macrovariables for a sample of 48 US states. We also examine the "typical" transmission properties of fiscal disturbances and the implied fiscal rules of states with different fiscal restrictions. Fiscal...

We study whether and how fiscal restrictions alter the business cycle features of macrovariables for a sample of 48 US states. We also examine the "typical" transmission properties of fiscal disturbances and the implied fiscal rules of states with different fiscal restrictions. Fiscal...

This study explores the impact of balanced-budget rules on states' fiscal policy outcomes, and tests whether this impact depends on the political and economic environments in light of the American states' experience from 2004 to 2010. The findings suggest that (1) budget rules are more binding...