Article

State and Local Governments and The National Economy

Richard H. Mattoon and Leslie McGranahan

in The Oxford Handbook of State and Local Government Finance

Published in print March 2012 | ISBN: 9780199765362
Published online September 2012 | | DOI: http://dx.doi.org/10.1093/oxfordhb/9780199765362.013.0005

Series: Oxford Handbooks

 State and Local Governments and The National Economy

More Like This

Show all results sharing these subjects:

  • Economics
  • Public Economics
  • Macroeconomics and Monetary Economics

GO

Show Summary Details

Preview

This article takes a longer-term look at the roles of the state and local government sector in the nation's economy. Over the last four decades, the sector has played a fairly constant, but substantial, role in the national economy as contributors to GDP when measured by their purchases. But there have been important changes in the composition of the sector's spending and revenues. An increasing share of expenditures has gone to social benefits (in particular, for Medicaid) and there has been growing reliance on the federal government as a source of funds. There has also been increasing dependence by states on personal income tax and a heightened sensitivity of state tax revenues to economic conditions. For the states, revenues thus have become more unreliable, while spending has been relatively unaffected by changing economic conditions.

Keywords: national economy; state governments; local governments; GDP; expenditures; revenues

Article.  6204 words. 

Subjects: Economics ; Public Economics ; Macroeconomics and Monetary Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.