abstract:The Governmental Accounting Standards Board (GASB) is the source of generally accepted accounting principles (GAAP) used by State and Local governments in the United States. As with most of the entities involved in creating GAAP in the United States, it is a private, non-governmental organization.
For analysts like Rauh, the main culprit is the governmentalaccountingstandardsboard (GASB), whose discounting metrics are a point of contention for economists.
But his reasoning is worth examining, because there is no question he has uncovered some very perverse incentives embedded in the rules put forth by the GovernmentalAccountingStandardsBoard.