State budget periodicity: An analysis of the determinants and the effect on state spending

Paula S. Kearns
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Paula S. Kearns: Assistant Professor of Political Science at Michigan State University, Postal: Assistant Professor of Political Science at Michigan State University

Journal of Policy Analysis and Management, 1994, vol. 13, issue 2, 331-362

Abstract: Much of the public budgeting literature focuses on the institutional rules of budgeting and how those rules affect process and outcomes. This study focuses on a particularly rudimentary rule of budgeting: the length of the budget period. State budgets are dictated (constitutionally or statutorily) to recur over one-or two-year intervals. Statistical analysis of the determinants of state budget periodicity shows that the more states spend, ceteris paribus, the more likely they are to budget annually. I hypothesize that budget periodicity has the opposite effect on spending: Biennial budget states spend more, ceteris paribus, than annual budget states spend. Ordinary least squares analysis does not support the hypothesis, but with instrumental variable methods, biennial budgeting exhibits a positive and statistically significant effect on state spending.

Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jpamgt:v:13:y:1994:i:2:p:331-362

DOI: 10.2307/3325017

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