Balanced budget rules and fiscal policy: evidence from the states.(A New Agenda - Old Constraints) From: National Tax Journal | Date: September 1, 1995| Author: | COPYRIGHT 1995 National Tax Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information) Copyright information

Review of balanced budget and deficit-reduction measures at the state level indicates that fiscal institutions do have the potential to affect budget shortfalls, indicating that balanced budget amendments and other reforms should be given serious consideration at the federal level. While state efforts vary widely in scope and enforcement mechanisms, there is some indication that expenditures decline when such laws are implemented. The measures may mitigate the implementation of voter-approved expenditures.

The persistence of fiscal deficits in many industrial democracies has spawned a vast ...

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