Skip to main content

ETHNOS_APP

Home • Search • Journals • List 0

The Case for Countercyclical Fiscal Capacity

Bibliographic Data

ID6295236
AuthorsYilin Hou (0000-0003-3195-7430), Donald P Moynihan (0000-0003-4097-6908, University of Wisconsin–Madison)
Year2006
Volume18
Issue1
Pages139-159
Publication date2006-12-26
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Public Administration Research and Theory (JOURNAL)
Journal identifiersISSN: 1053-1858 • E-ISSN: 1477-9803
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1093/jopart/mum006
OpenAlexW2001439791
LanguageEN
Citations received29
References cited9

A growing literature has sought to demonstrate when and how government capacity links to performance. This article examines those questions in the area of financial management. A basic challenge for state governments is to maintain budgetary stability and program predictability in face of economic downturns. State governments can best meet this challenge by developing what we call countercyclical fiscal capacity (CCFC). We present the concept of CCFC as the creation and use of financial tools that help state governments maintain countercyclical spending and program stability during revenue shocks. We operationalize the concept in terms of fiscal reserves that are used to mitigate emergency-spending cuts and tax increases and analyze the operation of such reserves over a period that includes recessions in 1991 and 2001. We find evidence of the efficacy of CCFC and argue for greater investments in this aspect of government capacity

Business · Economic policy · Economic stability · Economics · Financial stability · Financial system · Fiscal capacity · Fiscal policy · Government (linguistics · Government spending · Macroeconomics · Market economy · Monetary economics · Operationalization · Political science · Predictability · Recession · Revenue · State (computer science · Tax revenue · Welfare · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Finance

  • Capacity for public administration

    Open Access•Robert K Christensen, Beth Gazley•Public Administration and…•2008

  • New development

    Eugenio Caperchione, Federica Salvatori et al.•Public Money & Management•2014

  • Machine learning to predict local government deficits during economic downturns

    Whitney B Afonso, Jose Sanchez Gomez•Journal of Public Budgeting…•2026

  • Financial capacity and organizational stability in U.S. local governments

    Young Joo Park, Youngsung Kim et al.•Public Management Review•2022

  • Exploring local government fiscal slack in a political-budgetary-managerial framework

    Wenchi Wei•Public Management Review•2021

  • Understanding financial resilience from a resource-based view

    Sungyoon Lee, Gang Chen•Public Management Review•2022

  • Measuring and Benchmarking Fiscal Health

    Zhang Ping, Ping Zhang et al.•International Journal of Public…•2026

  • The Adoption of Budget Stabilization Funds Among U.S. States

    Open Access•Xiaoyan Hu•International Journal of Public…•2026

  • When Push Comes to Shove

    Cheongsin Kim, Sanghee Park•International Journal of Public…•2022

  • State Fiscal Reserves and the Great Recession

    Christian Buerger, Vincent Reitano•International Journal of Public…•2023

  • What organizational conditions, in combination, drive technology enactment in government-led smart city projects

    Open Access•Rui Mu, Maidina Haershan et al.•Technological Forecasting and…•2022

  • Municipal response to the Great Recession

    Open Access•Cary Christian, Jonathan Bush•Journal of Public Budgeting…•2018

  • The effects of tax and expenditure limit on state discretionary tax adjustment

    Open Access•Hai Guo•Journal of Public Budgeting…•2011

  • Facing fiscal crisis

    Open Access•Ping Zhang•Journal of Public Budgeting…•2015

  • How do non-profits use profits? Evidence from U.S. non-profit hospitals

    Jiahuan Lu, Young Joo Park•Public Management Review•2025

  • Do Local Governments Save and Spend Across Budget Cycles? Evidence From North Carolina

    Open Access•Wen Wang, Yilin Hou•The American Review of Public…•2011

  • Cyclical Asymmetry in State Fiscal Policy

    Open Access•Sunjoo Kwak•The American Review of Public…•2016

  • The Dynamics of State Fiscal Behavior Over the Business Cycle

    Open Access•Sunjoo Kwak•The American Review of Public…•2013

  • Resist, Recover, Renew

    Open Access•M Govinda Rao, Juliet Ann Musso et al.•The American Review of Public…•2023

  • Softening Performance's Pitfalls by Integrating Context and Capacity

    Open Access•Robert K Christensen, Tobin Im et al.•Public Administration Review•2021

  • State and Local Fiscal Sustainability

    Open Access•Jeffrey I Chapman, Jeffrey Chapman•Public Administration Review•2008

  • Direct Democracy and Administrative Disruption

    Vladimir Kogan, Stéphane Lavertu et al.•Journal of Public Administration…•2017

  • Cutback Management and the Paradox of Publicness

    Open Access•Sanjay K Pandey•Public Administration Review•2010

  • Fiscal Slack, Rule Constraints, and Government Corruption

    Open Access•Wenchi Wei•Public Administration Review•2020

  • Financial management conservatism under constraints

    Lang Yang•Local Government Studies•2017

  • Horizontal and vertical interactions in local fiscal slack

    Jongmin Shon, Sunjoo Kwak•Local Government Studies•2024

  • Why Public Financial Management Matters

    N Kioko, Sharon N Kioko et al.•Journal of Public Administration…•2011

  • The effects of tax and expenditure limits on state fiscal reserves

    Open Access•Craig S Maher, Craig Maher et al.•Public Policy and Administration•2017

  • Studying the Roles of Nonprofits, Government, and Business in Providing Activities and Services to Youth in the Phoenix Metropolitan Area

    Open Access•J Galaskiewicz, Olga Mayorova et al.•The Annals of the American…•2013

  • Public finance in theory and practice

    Richard Abel Musgrave•Public finance in theory and…•1976

  • State Responses to Fiscal Crises

    James M Poterba•Journal of Political Economy•1994

  • Modeling the Impact of Public Management

    Laurence J O’toole, L J O''Toole et al.•Journal of Public Administration…•1999

  • Is Hierarchical Governance in Decline? Evidence from Empirical Research

    C J Hill•Journal of Public Administration…•2004

  • Where Next? Research Directions on Performance in Public Organizations

    George A Boyne•Journal of Public Administration…•2005

  • Public Management and Organizational Performance

    Sean Nicholson‐crotty, Nicholson-Crotty et al.•Journal of Public Administration…•2004

  • Studying Governance and Public Management

    L E Lynn, Carolyn J Heinrich et al.•Journal of Public Administration…•2000

  • Measuring Citizen and Government Ideology in the American States, 1960-93

    William D Berry, Evan J Ringquist et al.•American Journal of Political…•1998

Unique citing works29
Citations per year1,61
Citation span2008 - 2026 (19)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 29

Tools

Open DOISci-HubOpen Access
Ethnos_APP • Open Source Project • MIT License • Frontend v2.0.0 • Privacy and Cookies • API Documentation: api.ethnos.app/docs • API Source Code: GitHub • DOI: 10.5281/zenodo.17049435 • Frontend Source Code: GitHub • DOI: 10.5281/zenodo.17050053 • cruz.rio.br • Expectantes Misericordiae