TY - JOUR
T1 - The fiscal effects of U.S. State budget stabilization funds (BSFs)
T2 - evidence from a meta-analysis
AU - Wang, Qiushi
AU - Peng, Jun
AU - Guan, Zhen
AU - Xiao, Yan
N1 - Funding Information:
National Natural Science Foundation of China, 2021, Grant ID: 72174215; Guangdong Planning Office of Philosophy and Social Science, 2019, Grant ID: GD19CGL41.
Publisher Copyright:
© Copyright © 2021 Taylor & Francis Group, LLC.
PY - 2022
Y1 - 2022
N2 - A budget stabilization fund (BSF) is an important fiscal instrument for states to stabilize their budgets, but studies have found varying results regarding its impact. We conduct a meta-analysis to determine whether and under what conditions BSFs can serve as an effective countercyclical tool. By synthesizing a total of 540 effect sizes from 23 original studies, we find that on average, BSFs have a moderate positive effect on government savings and a small negative effect on fiscal stress. Additionally, strict withdrawal rules seem to attenuate the positive relationship between BSFs and government savings, and compromise the negative relationship between BSFs and fiscal stress. The presence of budget balance requirements, party conflict and some other environmental factors may also moderate the BSF-savings and BSF-stress relationships. This research contributes to the BSF literature and provides useful policy recommendations for state governments to consider when designing or revising their BSF legislations.
AB - A budget stabilization fund (BSF) is an important fiscal instrument for states to stabilize their budgets, but studies have found varying results regarding its impact. We conduct a meta-analysis to determine whether and under what conditions BSFs can serve as an effective countercyclical tool. By synthesizing a total of 540 effect sizes from 23 original studies, we find that on average, BSFs have a moderate positive effect on government savings and a small negative effect on fiscal stress. Additionally, strict withdrawal rules seem to attenuate the positive relationship between BSFs and government savings, and compromise the negative relationship between BSFs and fiscal stress. The presence of budget balance requirements, party conflict and some other environmental factors may also moderate the BSF-savings and BSF-stress relationships. This research contributes to the BSF literature and provides useful policy recommendations for state governments to consider when designing or revising their BSF legislations.
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U2 - 10.1080/10967494.2021.1976331
DO - 10.1080/10967494.2021.1976331
M3 - Article
AN - SCOPUS:85115175659
SN - 1096-7494
VL - 25
SP - 980
EP - 1004
JO - International Public Management Journal
JF - International Public Management Journal
IS - 6
ER -