Capital Budgets, Borrowing Rules, and State Capital Spending / James Poterba.

Format:

Book

Author/Creator:

Poterba, James.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4235.

NBER working paper series no. w4235

Language:

English

Subjects (All):

Capital budget.

Budget.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1992.

Cambridge, Massachusetts : National Bureau of Economic Research, 1992.

Summary:

This paper uses cross-section data on the U.S. states to test the hypothesis that budgeting and borrowing rules affect the level and composition of public spending. It employs a 1963 data set with detailed information on state capital budgeting practices to compare capital spending in states that maintain separate budgets for capital and operating expenditures and states that employ a unified budget It also investigates the impact of financing rules, in particular pay-as-you-go rules for capital projects, on the level of spending. States with capital budgets tend to spend more on public capital, especially if they do not impose pay-as-you-go requirements for financing capital projects.

Notes:

Print version record

December 1992.