Fiscal shocks in Zurich prompt spending cuts, fiscal conservatism in response
The article looks at how sudden changes in tax revenue affect local government spending in Zurich, Switzerland. By using advanced computer analysis, the researchers found that when there's a big increase in revenue, the government tends to save some of it for later. But when revenue drops, they cut back on spending to make up for it. This shows that local policymakers try to keep their finances stable by adjusting their spending based on how much money they have coming in.