Results 161 to 170 of about 5,054 (202)
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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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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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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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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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The flypaper effect and political strength
Economics of Governance, 2002Simple models of local government behavior predict equal effects of private income and unconditional federal grants on local government expenditures. Numerous empirical analyses, however, find that the effect of grants is larger than the income effect.
Per Tovmo, Torberg Falch
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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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A minimalist model of federal grants and flypaper effects [PDF]
Journal of Public Economics, 1996 Abstract This paper shows that ‘flypaper effects’ can be observed for unconditional federal grants, even in the absence of agenda-setters, voting intransitivities, informational asymmetries, etc. In a simple representation of a regime of federal, general revenue grants, median citizen-voters are decisive over the levels of grants, taxation and ...
Brennan, G., Pincus, J.
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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 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 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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