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Browsing by Author "Reitano, Vincent"
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Item Extending differences-in-differences frameworks to Granger equations: Evidence from cutback management during three recessions(Emerald, 2021-10) Buerger, Christian; Sandel, Riley M.; Reitano, Vincent; Lofton, Michelle L.; Jones, Peter; School of Public and Environmental AffairsPurpose The authors show how to extend difference-in-differences (DiD) frameworks to Granger (1969) equations, a technique that tests for the parallel trends assumption and measures changes in effect sizes over time. To illustrate how these equations work, they apply them to state cutback management decisions in three recessions. Design/methodology/approach This study applies quantitative methods. The authors estimate DiD frameworks as Granger (1969) equations. Findings After empirically analyzing recessions that started in 1990, 2001 and 2007, the authors find that states deepen expenditure cuts when economic declines lengthen and tend to make large cuts to specific expenditure categories instead of spreading cuts equally over all service areas. Originality/value The authors offer two contributions of methodological value. First, they introduce the estimation of Granger equations to the study of topics in public administration. Second, they show how this technique helps to evaluate the impact of economic declines on state spending. By instituting these contributions, they offer a unique way of analyzing cutback management decisions.Item Fiscal Shocks, Budgetary Pressures, and Public Education Expenditure Stabilization(Taylor & Francis, 2022) Jones, Peter A.; Reitano, Vincent; Buerger, Christian; School of Public and Environmental AffairsFiscal shocks exert budgetary pressures on school districts and constrain their ability to provide public education. An emerging literature examines the role of fiscal reserves to mitigate expenditure cuts in school districts. In the U.S. context, this article provides evidence that Kentucky school districts from school years 2001–2002 to 2013–2014 drained fiscal reserves and cut expenditures in response to revenue decreases. Further, school districts drained fiscal reserves to stabilize non-instructional expenditures, which have fixed costs. Collectively, the findings presented in this article build evidence that school districts strategically respond to budgetary pressures.Item State Fiscal Reserves and the Great Recession(Taylor & Francis, 2022-03-16) Buerger, Christian; Reitano, Vincent; School of Public and Environmental AffairsGovernments around the world accumulate fiscal reserves to prepare for exogenous shocks such as recessions. Using data from 2004 to 2016 for state governments in the United States, we estimate empirical models controlling for time-variant and -invariant state characteristics. Our results show that savings increase at the expense of spending in specific categories and that fiscal reserves also support only certain expenditure functions. Further, we find that the relationship between savings and spending differs over the business cycle as fiscal reserves increase during times of economic prosperity and decrease during economic declines.