This article examines the theory behind the design of fiscal transfers; it identifies acyclicality of transfers as a drawback and proposes counter cyclical design as an optimal fiscal framework to mitigate cyclical economic fluctuations. It further advocates counter-cyclical transfers for...

This paper formulates a model of countercyclical use of long-term full faith and credit debt by subnational governments to finance infrastructure. The model incorporates long-term debt into budgetary policy, considering debt capacity, purposes and security of debt, and equity. The proposition is...

This article develops a generic framework to explain the environment for public–private partnership (PPP) development in transitional economies. The framework stands on a tripod that includes the market, the operating environment, and the government, each containing several factors that...

Some state and local governments continue to consider moving from income and property taxes, respectively, towards consumption taxes. Since the mid-1970s Georgia's local governments have had the option to substitute sales taxes for a portion of property tax receipts; the adoption of local option...

By re-examining the fiscal and budgetary priorities of the Carter administration at its 30th anniversary, this article offers a different view from previous studies about Carter policies. The author proposes three things: first, that the late-1970s were a transition from the Liberalist Movement...

In the study of state-local relations, interactions between the two layers in fiscal policy are an important area. States direct and exercise oversight over local governments, also provide substantial financial assistance. These have played into the state-local interactions in their fiscal...

Pay-as-you-go (pay-go or cash) and pay-as-you-use (pay-use or debt) are two mechanisms to finance capital projects. While pay-go faces multiple constraints, pay-use smoothes outlays, stabilizes tax rates, and improves inter-generational equity. Thus, pay-use has dominated infrastructure...

This paper explores the fungibility between earmarked local option sales taxes and general revenue. We predict that as the adjustment costs to the budget grow, there will be less compensation from general revenue. We use national county level data from 1983 to 2004 to examine the effects of...

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...