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Financial Management Grades for the States: A Prospective Use
Author(s) -
RUBIN MARILYN MARKS,
WILLOUGHBY KATHERINE
Publication year - 2009
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.1540-5850.2009.00923.x
Subject(s) - finance , financial management , business , gauge (firearms) , government (linguistics) , geography , linguistics , philosophy , archaeology
This research examines whether financial management grades awarded to the states by the Government Performance Project (GPP) can provide some prospective gauge of fiscal performance in proximate years, particularly on the downside of the business cycle. Our findings confirm the weaker fiscal condition in both 2002 and 2003 of states that received lower financial management grades from the GPP in 2001, suggesting that these grades have the potential to be prospective as well as retrospective. These results, however, are tempered by several concerns that inform our suggestions for additional research to further assess the prospective potential of financial management performance grades.