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Local governments' ability to sustain a healthy fiscal structure and meet service obligations is critical in avoiding financial hardship. This study empirically tests the effects of intrastate fiscal decentralization on municipal fiscal health that is measured by cash solvency, budget solvency, and long-run solvency. The two key variables, revenue decentralization and expenditure decentralization, are constructed to represent intrastate fiscal decentralization. The panel dataset includes 100 large U.S. cities and covers fiscal years 2007 through 2016, which encompasses periods before, during, and after the Great Recession started in 2008. The model estimation is based on a two-way fixed-effect panel regression. The results show that an increased degree of state-local revenue decentralization is significantly associated with higher long-term solvency, while an increased degree of state-local expenditure decentralization leads to higher levels of cash solvency and lower levels of long-term solvency.

This paper proposes a methodology to estimate the monetary target and the probability of monetary intervention in Taiwan. The methodology is based on the estimation of a regime switching model. Empirical results show that a target band between 0.95 and 2.17 percent per month has been in effect, and most often the monetary authority has followed a non‐interventionist policy. It is probable that the monetary authority engaged in an expansionary policy when intervention was warranted. Adjustments of the rediscount rate by the central bank were found to be consistent with the magnitude of the intervention pressure as predicted by the model.

This paper aims to propose a feasible framework for estimating the efficiency of input factors for banks and the adjustment of these factors necessary to achieve full efficiency in the short and long term. Based on a sample of 39 Taiwanese banks during 1999–2011, the framework recommends a scheme along with a set of adjustments empirically that allow the banks to not only achieve full efficiency but also save 10.3% of the total costs in the short term and 8.8% in the long term. This scheme amounts to short‐term and long‐term savings of NT$3.6 billion and NT$3.1 billion, respectively. (JEL C23, D24, G21)