In this paper, we develop and test a general measure of policy expenditures in the American states. Our approach is to construct a spatial proximity model of yearly state program spending. The empirical analysis reveals that state spending patterns vary along a clear and readily-interpretable...

Abstract: How has the COVID-19 pandemic affected state budgets? Using a quarterly panel of states between 1994 and 2019, we estimate how changes in employment affect tax revenues. We find that a one percentage point (pp) rise in employment is associated with a 1.56pp rise in total tax revenue,...

How has the COVID-19 pandemic affected state budgets? Using a quarterly panel of states between 1994 and 2019, we estimate how changes in employment affect tax revenues. We find that a one percentage point (pp) rise in employment is associated with a 1.56pp rise in total tax revenue, which is...