Social Sector Expenditures and Rainy-Day Funds
Gonzalez and Paqueo examine the effects of budget stabilization funds--often called rainy-day funds--on the volatility of social spending and, for contrast, on nonsocial sector spending. They analyze the rainy-day funds of U.S. states. The authors...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/09/2516827/social-sector-expenditures-rainy-day-funds http://hdl.handle.net/10986/18112 |
| Summary: | Gonzalez and Paqueo examine the effects
of budget stabilization funds--often called rainy-day
funds--on the volatility of social spending and, for
contrast, on nonsocial sector spending. They analyze the
rainy-day funds of U.S. states. The authors find that
rainy-day funds are ineffective in reducing the volatility
of nonsocial sector expenditures but are effective in
reducing the volatility of social sector expenditures. The
authors also find that states that have stringent deposit
and withdrawal rules have higher rainy-day fund balances,
and thus are more effective in reducing the volatility of
social sector expenditures. Finally, for long-term
effectiveness, stabilization funds depend obviously on
sustained economic growth. |
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