Dr. Xu’s research on state fiscal policy (with Ljubinka Andonoska, University of Texas at El Paso) was presented at the recent Association of Budgeting and Financial Management (ABFM) Annual Conference in Washington D.C. (Sept. 30-Oct. 2, 2021). The paper, titled “How Fiscal Stringency Influences Financial Condition? A Panel Data Analysis of U.S. State Tax and Expenditure Limits (2003-2018),” empirically examines the short-term and long-term impact of tax and expenditure limits on state’s financial condition.
The paper utilizes the longitudinal financial data extracted from state government comprehensive annual financial reports and creates a new model for evaluating state government’s financial condition by using 14 ratio indicators that measure five aspects of solvencies, including cash solvency, budgetary solvency, long-run solvency, and pension solvency.
The paper finds that TELs have found impacted short-run and long-run solvencies differently and offers some tentative policy recommendations for state policy makers and state government financial managers.
Additional information on the conference can be found at: https://abfm.org/annual-conference/
