Kondo, Ayako; Svec, Justin - Department of Economics and Accounting, College of the … - 2009
policy cyclicality on state GDP growth. While most states have passed laws restricting deficits, the nature and strictness of … the diversity in these laws as an instrument for the cyclicality of state government spending. We find modest evidence … that more counter-cyclical public expenditure increases a state's average growth rate per capita. Further, our point …