Despite the shortfalls in public employee pension funds, there is little known about the effect of fiscal institutions on pension funding. This paper focuses attention on the link between pension contributions and budget stabilization funds (BSFs) over the period 1997-2008. It employs the Blundell-Bond (1998) estimator in order to address the concern that the deposit and withdrawal rules that drive the management of BSFs may be endogenous to state pension contributions. Empirical results suggest that BSFs with strict deposit rules are associated with higher pension contributions, while strict withdrawal rules are associated with lower contributions.
|Original language||English (US)|
|Number of pages||20|
|Journal||Public Budgeting and Finance|
|State||Published - Sep 2013|
ASJC Scopus subject areas
- Economics and Econometrics
- Public Administration