Giertz, J Fred and Giertz, Seth (2004): The 2002 Downturn in State Revenues: A Comparative Review and Analysis. Published in: National Tax Journal , Vol. 57, No. 1 : pp. 111-132.
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We analyze the behavior of state revenues since the early 1950s to determine the severity of the revenue declines experienced by states after the 2001 recession. Both total state revenues for the nation and state–level data for each state are studied. We conclude that the states were indeed hit with an unprecedented downturn in revenues—unlike anything that had been experienced in the preceding half–century. Further and contrary to general perceptions, revenue increases in the years preceding the downturn were not particularly strong compared to revenue increases in the years leading up to previous recessions. We further conclude that most proposed budget rules dealing with either taxes, spending, or savings would have been insufficient to address the states’ problems and that states will need major discretionary structural changes in state revenues and expenditures to return to fiscal balance.
|Item Type:||MPRA Paper|
|Original Title:||The 2002 Downturn in State Revenues: A Comparative Review and Analysis|
|Keywords:||State Revenues; Business Cycle; State Budget;|
|Subjects:||H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H72 - State and Local Budget and Expenditures
H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H71 - State and Local Taxation, Subsidies, and Revenue
H - Public Economics > H2 - Taxation, Subsidies, and Revenue
|Depositing User:||Seth Giertz|
|Date Deposited:||03. Nov 2009 03:10|
|Last Modified:||19. Feb 2013 08:43|
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