Factors contributing to better fiscal conditions among States

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From: Atlantic Economic Journal(Vol. 40, Issue 4)
Publisher: Springer
Document Type: Report
Length: 820 words
Lexile Measure: 1400L

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Fiscal conditions among states in the United States improve with more personal freedom, greater economic freedom, and less state legislature professionalism. The magnitude of the state international manufacturing export sector and the level of inward state foreign direct investment seem to tamp down fiscal conditions. Evidence from all states suggests a variety of useful metrics that contribute to alleviating deficit pressure on state fiscal conditions.

A change in state net assets is indicative of an actual surplus or deficit in state fiscal conditions. Fiscally healthy states have larger surpluses or smaller deficits. Improving fiscal health is possible even in a tough economic environment. Using a multivariate regression analysis, results suggest a significant relationship between fiscal conditions and several socioeconomic variables. Data is drawn for all 50 states in the United States covering a period from 2003 to 2010 from the Comprehensive Annual Financial Report (CAFR) filings of state government.

Previous inquiries document the influence of both economic and political freedom on the fiscal conditions of national governments. Elements of freedom such as the rule of law, limits on the scope of government, efficiency of administrative regulation, and openness to Wade and investment affect material well-being. However, inquires still have yet to document the effect of...

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Gale Document Number: GALE|A318344645