In this paper, we exploit a quasi-exogenous change that reduced the number of U.S. military personnel by 40% between 1988 and 2000 to estimate the long-term causal effect of population losses on local government revenue, expenditure, and debt. Aggregating across all governmental units within...

In this paper we examine the effect of light rail transit on the residential real estate market in Hampton Roads, Virginia. The Norfolk Tide light rail began operations in August 2011 and has experienced disappointing levels of ridership over its first four years of operations. We estimate the...

Since budget stabilization funds have the potential to aid states in mitigating periods of fiscal stress, they may reduce the default risk associated with state-issued debt. This paper explores how budget stabilization funds affect state borrowing costs. While the empirical results reveal that...

By relaxing the assumption that states respond equally to competition, we demonstrate that significant regional differences exist in both the degree and direction of interstate competition. This suggests empirical models of interstate competition benefit from more complex forms of interaction.

This paper presents new evidence of spatial correlation in U.S. state income growth. We extend the basic spatial econometric model used in the growth literature by allowing spatial correlation in state income growth to vary across geographic regions. We find positive spatial correlation in...

This article will explore the extent, causes, and proposed solutions of the current fiscal crisis from a historical perspective of state finance. Although the current fiscal crisis is severe, it becomes more difficult to assess unless one has a more complete understanding of the historical...

We use a spatial model to investigate a state’s choice of branch banking and interstate banking regimes as a function of the regime choices made by other states and other variables suggested in the literature. We extend the basic spatial econometric model by allowing spatial dependence to vary...

The economic downturn that began in 2001 resulted in sizable budget shortfalls and arguably the worst fiscal conditions for state governments in decades. The use of savings to stabilize cyclical fluctuations in the budget has been institutionalized in most states in the form of budget...