Carlino, Gerald; Inman, Robert P. - National Bureau of Economic Research (NBER) - 2013
Using a sample of the 48 mainland U.S. states for the period 1973-2009, we study the ability of U.S. states to expand own state employment through the use of state deficit policies. The analysis allows for the facts that U.S. states are part of a wider monetary and economic union with free...