A growing literature has sought to demonstrate when and how government capacity links to performance. This article examines those questions in the area of financial management. A basic challenge for state governments is to maintain budgetary stability and program predictability in face of...

This paper explores how the saving behavior of state governments is affected by adopting the budget stabilization fund (BSF) and by the state's balanced budget requirements (BBR). As a fiscal/budgetary institution, BSFs with unique design features and varying combinations of the BBR articles...

This article tests the effects of fiscal reserves on state total own-source expenditure in downturn years. Using a panel data set (fifty states, 1979 to 1999), the article uses the variance-from-trend as the dependent variable to estimate the effects of aggregate reserves as well as budget...