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The Role of Intergovernmental Aid in Defining Fiscal Sustainability at the Sub-National Level

June 30, 2014 10:00 AM

In The Role of Intergovernmental Aid in Defining Fiscal Sustainability at the Sub-National Level, authors Hyunjung Ji, Jeong J. Ahn, and Jeffrey I. Chapman address the concept of fiscal sustainability in the context of a federal system. There are at least three reasons why fiscal sustainability matters in this context. First, the notion of local governments entering bankruptcy proceeds is no longer a theoretical notion. Second, previous formal sustainability analysis has primarily focused on the aggregate primary balance and debt, with little disaggregation. Finally, there is a need to examine if city and county governments are fiscally sustainable if there is no intergovernmental aid from the state or federal governments.

This paper was originally presented during the 2013 Fall Research Conference and is part of APPAM's Online Paper Collection from that event.

Read the full paper [PDF]

 

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