TY - JOUR
T1 - Grant Levels and Debt Issuance
T2 - Is There a Relationship? Is There Symmetry?
AU - Martell, Christine R.
AU - Smith, Bridget Marie
PY - 2004/9
Y1 - 2004/9
N2 - Although previous work on fiscal federalism and grants has focused on the effects of grants on expenditures, no published research examines the impact of decreasing grants on state financing. This research addresses how decreasing levels of federal grant money to states affect states' long-term debt issuance, and whether the relationship is symmetric for increasing and decreasing grants. The model is tested with time series, cross-sectional data from 1984 to 1999. The results show that grants affect debt issuance, the effect is asymmetric, and direction of the effect differs for different types of debt issuance.
AB - Although previous work on fiscal federalism and grants has focused on the effects of grants on expenditures, no published research examines the impact of decreasing grants on state financing. This research addresses how decreasing levels of federal grant money to states affect states' long-term debt issuance, and whether the relationship is symmetric for increasing and decreasing grants. The model is tested with time series, cross-sectional data from 1984 to 1999. The results show that grants affect debt issuance, the effect is asymmetric, and direction of the effect differs for different types of debt issuance.
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U2 - 10.1111/j.0275-1100.2004.02403004.x
DO - 10.1111/j.0275-1100.2004.02403004.x
M3 - Article
AN - SCOPUS:34248049937
SN - 0275-1100
VL - 24
SP - 65
EP - 81
JO - Public Budgeting and Finance
JF - Public Budgeting and Finance
IS - 3
ER -