A Framework for Understanding State Balanced Budget Requirement Systems: Reexamining Distinctive Features and an Operational Definition

24 Pages Posted: 2 Feb 2007

See all articles by Yilin Hou

Yilin Hou

Maxwell School, Syracuse University

Daniel L. Smith

New York University

Abstract

Studies of state fiscal and budgetary policies often use balanced budget requirements (BBRs) as explanatory variables. While current measures laid the crucial groundwork for a basic understanding of state BBRs, their lack of comprehensiveness threatens the validity of empirical work. Based on comprehensive legal research, this article offers a framework for analyzing state requirements: each state's BBRs form a coherent system for achieving budget balance through budget cycles; a fully developed BBR system offers a three-line construct against imbalance; and the more complete, developed, and explicit a BBR system is, the more stringent it will be in achieving budgetary balance.

Suggested Citation

Hou, Yilin and Smith, Daniel L., A Framework for Understanding State Balanced Budget Requirement Systems: Reexamining Distinctive Features and an Operational Definition. Public Budgeting & Finance, Vol. 26, No. 3, pp. 22-45, September 2006, Available at SSRN: https://ssrn.com/abstract=924450 or http://dx.doi.org/10.1111/j.1540-5850.2006.00853.x

Yilin Hou (Contact Author)

Maxwell School, Syracuse University ( email )

426 Eggers Hall
Syracuse, NY 13244-1020
United States
315-443-3114 (Phone)

HOME PAGE: http://www.maxwell.syr.edu/pa/cpr/Hou,_Yilin/

Daniel L. Smith

New York University ( email )

The Puck Building
295 Lafayette Street, Second Floor
New York, NY 10012
United States
212-998-7400 (Phone)

HOME PAGE: http://wagner.nyu.edu/danielsmith

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
24
Abstract Views
1,289
PlumX Metrics