Carl Backen

Date of Award

2014

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Fitzgerald, Keith

Keywords

Fiscal Policy, Balanced Budget, Income Inequality

Area of Concentration

Political Science

Abstract

Balanced budget requirements are one very popular method of enforcing fiscal responsibility, with 49 states possessing at least one type of requirement. While balanced budget requirements fulfill common-sense views of budgeting practices, they present an intellectual puzzle if considered alongside a Keynesian perspective on fiscal policy because they mandate pro-cyclical rather than counter-cyclical fiscal behavior. This thesis examines the origins and the outcomes of balanced budget requirements using two statistical models. The most notable findings in this thesis are the identification of various trends in adoption patterns and a tentative link between balanced budget requirements and increased income inequality. This thesis also identifies promising paths for future research regarding balanced budget requirements and other fiscal constraints.

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