Journal Article
The Fiscal Stance of U.S. States
Bi, Huixin; Bae, Jaeheung (2018-11-28)
We study the fiscal stance of U.S. states through the lens of state reserve funds. We find that the overall rainy day and unemployment insurance funds have largely recovered since the start of the Great Recession but at an uneven pace across states. More importantly, we find that states are better prepared to meet their own budgetary shortfalls in the event of a downturn than the shortfalls of households.
Macro Bulletin , Issue November 28, 2018 , Pages 1-3

Journal Article
Tracking U.S. GDP in Real Time
Bae, Jaeheung; Doh, Taeyoung (2019-07)
Measuring the current state of the U.S. economy in real time is an important but challenging task for monetary policymakers. The most comprehensive measure of the state of the economy?real gross domestic product?is available at a relatively low frequency (quarterly) and with a significant delay (one month). To obtain more timely assessments of the state of the economy, the Federal Reserve Bank of Kansas City has developed a GDP tracking model that combines new econometric methods with two conventional approaches to estimating GDP. {{p}} Taeyoung Doh and Jaeheung Bae review the Kansas City Fed ...
Economic Review , Issue Q III , Pages 5-19

Journal Article
Rainy Day Funds Have Grown as State Tax Revenue Strengthens
Bi, Huixin; Bae, Jaeheung (2019-10-16)
Many state governments have seen solid growth in their tax revenues over the past couple of years. We show that recent changes in the federal tax code contributed to the uptick in state revenues. In addition, we show that states have used the recent revenue windfall to build up rainy day funds at a much faster pace than they did before the Great Recession.
Economic Bulletin , Issue October 16, 2019 , Pages 4