Results 121 to 130 of about 275 (159)
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Minimum Spending in Education and the Flypaper Effect
Economics of Education Review, 2020Abstract Education funds in Brazil comprise local revenue and intergovernmental transfers. This study analyzes the importance of budget structure on government spending in education by estimating the effects of two characteristics of the fiscal arrangement: (i) a minimum spending rule, and (ii) a set of intergovernmental transfers.
Tassia Cruz
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Flypaper Effect in the Republic of Serbia
Lex localis - Journal of Local Self-Government, 2022The main objective of this study is to examine whether the local self-governments (LSG) in Serbia spend their budget as predicted by the flypaper effect (FPE). The presence of the FPE was estimated using the panel regression applied to the population of 166 Serbian LSGs for the period 2011-2019.
Siniša Mali, Lenka Maličká
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We investigate the phenomenon of flypaper effect and its relationship with the local tax effort by using a panel data comprising approximately 48 percent of the Mexican municipalities. Our estimations based on the fixed effect and difference GMM estimators confirm the existence of flypaper effect.
Oscar Cardenas, Amarendra Sharma
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Journal of Urban Economics, 1991
Abstract The flypaper effect is the common empirical result that lump-sum intergovernmental grants stimulate more local government spending than increases in private income which are theoretically equivalent. In this paper, four of the best-known explanations of the flypaper effect are tested, using data from Michigan school districts.
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Abstract The flypaper effect is the common empirical result that lump-sum intergovernmental grants stimulate more local government spending than increases in private income which are theoretically equivalent. In this paper, four of the best-known explanations of the flypaper effect are tested, using data from Michigan school districts.
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Journal of Economic Perspectives, 1995
What happens to a state's spending when it receives an unconditional grant from the federal government? The standard theoretical analysis predicts that the increase in spending will be the same as that generated by an equivalent increase in local incomes--or roughly 5-10 percent for most states.
James R. Hines, Richard H. Thaler
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What happens to a state's spending when it receives an unconditional grant from the federal government? The standard theoretical analysis predicts that the increase in spending will be the same as that generated by an equivalent increase in local incomes--or roughly 5-10 percent for most states.
James R. Hines, Richard H. Thaler
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1999
Chapter 9 set out the traditional theory of grants-in-aid which shows how, in terms of the stimulatory effect on local government spending, a general lump-sum grant has the same effect as an equivalent increase in the disposable incomes of the individuals in the community (represented by the median voter).
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Chapter 9 set out the traditional theory of grants-in-aid which shows how, in terms of the stimulatory effect on local government spending, a general lump-sum grant has the same effect as an equivalent increase in the disposable incomes of the individuals in the community (represented by the median voter).
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The 'Flypaper Effect' is not an anomaly [PDF]
, 2003 An in-kind subsidy is equivalent, both theoretically and empirically, to an increase of income for an individual consumer. But the equivalence does not empirically carry over to in-kind grants by a central government to a local one: this has been seen as an anomaly and dubbed the â??flypaper effect.â?? We argue that the â??anomalyâ?? label is incorrect:
John Roemer +3 more
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The Flypaper Effect Revisited: An Econometric Explanation
The Review of Economics and Statistics, 1987Monte Carlo evidence is presented which supports the conclusion that when a block grants variable in an ordinary least squares (OLS) model is endogenously constructed due to the closed-ended nature of matching aid, estimates of the propensity to spend lump-sum aid are biased upward.
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The Flypaper Effect: Methods, Magnitudes, and Mechanisms
Journal of Education Finance, 2020abstract: The flypaper effect exists if intergovernmental aid worth $1 to voters has a larger impact on public service demand than $1 of household income. In this paper, we review the methodology required to estimate flypaper effects in the demand for local public education, provide new flypaper effect estimates, and survey behavioral explanations for
Phuong Nguyen-Hoang, John Yinger
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The flypaper effect and other anomalies
Journal of Public Economics, 1983Abstract I develop a model in which income, both in its own right and as a proxy for other socioeconomic characteristics, is an input in the production function for local public services (the most obvious example is education, though there are other applications as well). The comparative statics results from this model yield the following results. (1)
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