Social Sector Expenditures and Rainy-Day Funds

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 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.

Saved in:
Bibliographic Details
Main Authors: Gonzalez, Christian Y., Paqueo, Vicente B.
Language:English
en_US
Published: World Bank, Washington, DC 2003-09
Subjects:APPROPRIATIONS, BALANCED BUDGETS, BANKING SYSTEM, BUDGETARY INSTITUTIONS, BUSINESS CYCLES, CASH ASSISTANCE, CASH FLOW, CORPORATE GOVERNANCE, CORRUPTION, COST FUNCTIONS, CREDIT RATING, DEFICITS, DISCLOSURE, DISCRIMINATION, ECONOMIC ANALYSIS, ECONOMIC CONSEQUENCES, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMIC SHOCKS, EMPLOYMENT, EXPENDITURE, FISCAL, FISCAL CRISES, FISCAL CRISIS, FISCAL DISCIPLINE, FISCAL STRESS, FOREIGN DIRECT INVESTMENT, GOVERNMENT SAVINGS, HOUSING, INCOME, INSTITUTIONAL ARRANGEMENTS, INSTITUTIONAL INVESTORS, INSURANCE, LABOR UNIONS, LEGISLATURE, LEGISLATURES, LOCAL GOVERNMENTS, OIL, POLICY INSTRUMENTS, POLITICAL ECONOMY, POLITICIANS, PUBLIC BUDGETING, PUBLIC OFFERINGS, PUBLIC SPENDING, RATING AGENCIES, REVENUE AVAILABILITY, REVENUE GROWTH, REVENUE SOURCES, RISK MANAGEMENT, RISK MANAGEMENT SYSTEMS, SOCIAL PROTECTION, SOCIAL SAFETY, SOCIAL SAFETY NET, SOCIAL SECTOR, SOCIAL SECTOR EXPENDITURES, SOCIAL WELFARE, STATE BUDGET, STATE FISCAL POLICY, STATE GOVERNMENT, TAX, TAX REVENUE, WORKING CAPITAL FUNDS, EXPENDITURES, BUDGET SYSTEMS, SOCIAL PROTECTION SYSTEMS, SOCIAL SERVICES, HOUSEHOLDS, WORKING CAPITAL, FUNDS,
Online Access:http://documents.worldbank.org/curated/en/2003/09/2516827/social-sector-expenditures-rainy-day-funds
https://hdl.handle.net/10986/18112
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
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.

Similar Items