, we find strong partisanship effects in the marginal propensity to spend federal transfers, the so-called y-paper effect …

correlated with omitted variables leading to a downward bias in estimates of income's effects and an upward bias in estimates of … aid's effects. Third, it's a specification problem: the representative citizen either fails to observe lump-sum aid, or … sees aid but mis-perceives its impact as an average price effect, or finally, sees and understands aid's budgetary effects …

effects of taxes on city employment levels for New York City and Philadelphia -- the two cities for which employment series … are available -- show the local income and wage tax rates have significant negative effects on city employment levels …