The authors specify a model of municipal labor demand when resource flows available to the municipality are uncertain. The model allows them to test the hypothesis that employment decisions are rational in the sense that they incorporate all available information at the time that the decisions...

This paper examines the intertemporal linkages between local government expenditures and revenues. The main results that emerge from an analysis of fiscal data from 171 municipal governments over the period 1972-80 are that (1) one or two years are sufficient to summarize the relevant dynamic...

Using a matched sample of federal estate and personal income tax returns, we examine how the receipt of an inheritance affects an individual's decision to become an entrepreneur and the amount of capital employed in the new enterprise. These findings are consistent with the presence of liquidity...