Local governments’ responses to the fiscal stress label

The case of New York

Bibliographic Data

ID7331996
AuthorsIl Hwan Chung (0000-0003-0061-2827, Sungkyunkwan University, corresponding author), Daniel Williams (0000-0001-5075-2049, Baruch College)
Year2020
Volume47
Issue5
Pages808-835
Publication date2020-07-28
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueLocal Government Studies (JOURNAL)
Journal identifiersISSN: 0300-3930 • E-ISSN: 1743-9388
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/03003930.2020.1797693
OpenAlexW3044138592
LanguageEN
Citations received5
References cited31

Fiscal stress has been a source of significant concern for local governments and has led to the introduction of a variety of approaches for dealing with such a situation. One emerging practise is to adopt early-warning systems which identify fiscal stress, assign a fiscal stress label, and assist with local governments' financial management. Although there is a growing body of research focusing on fiscal stress indicators, there is a lack of studies examining whether localities given a fiscal stress label by the fiscal stress monitoring system improve their fiscal health. With a regression discontinuity design, we have found that less stressed localities improve their financial condition as compared with more stressed ones in the short run. This study has the potential to inform discussions about the role and strategies of states in strengthening localities' financial situations and designing a better fiscal monitoring system

Business · Economics · Fiscal policy · Fiscal union · Fiscal year · Macroeconomics · Public economics · Regression discontinuity design · Stress (linguistics · Variety (cybernetics · Computer Science · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Housing Market and Economics · Medicine · Finance

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