IIPF Director and Affiliated Faculty Present Paper on Fiscal Sustainability at Federal Reserve Bank/UIC Government Finance Research Conference
IIPF Director Dr. Kenneth Kriz and Affiliated Faculty member Rick Funderburg presented a paper at the recent conference “Ready or Not? Post-Fiscal Crisis/Next Fiscal Crisis”, hosted by the Federal Reserve Bank of Chicago and the University of Illinois at Chicago’s Government Finance Research Center. The paper was titled “Measuring Fiscal Sustainability of Local Governments: A Stress Testing Approach Using Illinois Municipalities.” In the paper, Drs. Kriz and Funderburg assessed the fiscal sustainability of a sample of Illinois city governments using a technique called stress testing. This technique has been used to assess the solvency of financial institutions and the entire financial sector in the wake of the 2008-09 financial crisis. The researchers find that while some cities are well prepared for tough fiscal times, many others are likely to encounter severe fiscal stress during an economic downturn.
The paper is available on the Working Papers page and will be available soon at the conference website: https://gfrc.uic.edu/ready-or-not-post-fiscal-crisis-next-fiscal-crisis/ .