The behavior of interperiod equity-related performance measures over time

Despite the GASB's notion that government services rendered during the current year should be paid for by revenues raised during that year, it is unrealistic for governmental revenues and expenditures to be balanced each and every year. An empirical analysis of 3 interperiod equity-related performance measures for 40 large cities over a 35-year period is presented in order to examine which budgeting perspective seems to exist. The empirical results are consistent with a multi-year budgeting horizon.