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Minimizing the Harm of State Fiscal Volatility
State Tax Notes (2010)
  • David Gamage, Berkeley Law
  • Jeremy Bearer-Friend
Abstract

This report’s primary concern is how U.S. state governments should respond to the fiscal volatility created by their balanced budget constraints. Applying the principles of risk allocation theory to this recurring problem, we conclude that states should primarily adjust the rates of broad-based taxes as their economies cycle, rather than fluctuating public spending.

Publication Date
September 6, 2010
Citation Information
David Gamage and Jeremy Bearer-Friend. "Minimizing the Harm of State Fiscal Volatility" State Tax Notes Vol. 57 Iss. 10 (2010)
Available at: http://works.bepress.com/david_gamage/28/