The Effect of Fiscal Stress Labels on Local Governments’ Financial Management: Evidence from New York State Fiscal Stress Monitoring System

IF 0.5 Q4 ECONOMICS

PUBLIC FINANCE REVIEW Pub Date : 2023-09-29 DOI:10.1177/10911421231199023

Hyewon Kang, Gang Chen

引用次数: 0

Abstract

State government's role in monitoring local governments’ fiscal distress gained importance after several local financial crises. Although many states have implemented state monitoring systems, the effectiveness of these systems has not been well understood. Using the case of the New York State, we conducted a regression discontinuity analysis to examine the effect of fiscal stress labeling on local governments. We find some evidence to support that fiscal stress labels lead local governments to improve their fund balance and cash positions. Specifically, school districts at the early stage of fiscal stress are more responsive to the labels than districts under more severe fiscal stress.

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财政压力标签对地方政府财务管理的影响:来自纽约州财政压力监测系统的证据

在几次地方财政危机之后，州政府在监督地方政府财政困境方面的作用变得越来越重要。尽管许多州已经实施了状态监测系统，但这些系统的有效性尚未得到很好的了解。以纽约州为例，我们进行了回归不连续分析，以检验财政压力标签对地方政府的影响。我们发现一些证据支持财政压力标签导致地方政府改善其资金余额和现金状况。具体来说，处于财政压力早期阶段的学区比财政压力更严重的学区对标签的反应更敏感。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

PUBLIC FINANCE REVIEW ECONOMICS-

CiteScore

1.30

自引率

0.00%

发文量

期刊介绍： Public Finance Review is a professional forum devoted to US policy-oriented economic research and theory, which focuses on a variety of allocation, distribution and stabilization functions within the public-sector economy. Economists, policy makers, political scientists, and researchers all rely on Public Finance Review, to bring them the most up-to-date information on the ever changing US public finance system, and to help them put policies and research into action. Public Finance Review not only presents rigorous empirical and theoretical papers on public economic policies, but also examines and critiques their impact and consequences. The journal analyzes the nature and function of evolving US governmental fiscal policies at the national, state and local levels.