Slack resources, state rules, and local stability: evidence from New York school districts
研究了纽约州学区中松弛资源对财政稳定性的影响，发现遵守州规则的学区能逆周期使用松弛资源，而不遵守的则不能，表明州指导能增强松弛资源与稳定性之间的联系。
State-imposed rules often define an allowable level of local slack resources, presuming that states can guide towards an appropriate level. Some local governments, however, may circumvent rules, seeking to determine slack resources locally. These contrasting views remain underexplored in existing research. Using New York State’s school districts, we bridge this gap by examining the effect of slack resources on fiscal stability, taking districts’ rule compliance into consideration. Through the Heckman two-stage procedure, we find that compliant districts use slack resources counter-cyclically, while non-compliant ones do not. The results suggest that state guidance could bolster the slack resource-local stability link.