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We investigate the effect of general-purpose transfers on different expenditure categories and tax rates in the municipalities of Saxony (eastern Germany) and North Rhine-Westphalia (western Germany). Findings from the panel data analysis suggest the existence of the "flypaper effect" -...
Persistent link: https://www.econbiz.de/10011562932
specific type of recipients. The results from these studies are mixed and make clear that knowledge about grants effects is to … this date still insufficient. This paper contributes by estimating causal effects on local expenditures and income tax …
Persistent link: https://www.econbiz.de/10013120618
We consider a model where local and national governments both tax income and use the revenue to invest in both productive and consumptive public goods. Local governments will overprovide the consumptive public good if the local income tax is (partially) deductible. However, without full...
Persistent link: https://www.econbiz.de/10013089328
The release of the final draft of the Consultative Committee (Con-Com) to Review the 1987 Constitution, officially designated as “Bayanihan Federalism”, has spurred vigorous debate, with much discussion focusing on the fiscal repercussions of moving towards a federal form of government. This...
Persistent link: https://www.econbiz.de/10012909989
This paper investigates the effects of fiscal equalization grants on total expenditure and disaggregated expenditures … Japanese fiscal equalization scheme and estimating local average grant effects with a regression kink design and an … instrumental variable approach, I demonstrate that there exist heterogeneous grant effects for two groups of municipalities with …
Persistent link: https://www.econbiz.de/10013023697
We study the fiscal and tax response to intergovernmental grants, exploiting quasi-experimental variation within Germany’s fiscal equalization scheme triggered by Census revisions of official population counts. Municipal budgets do not adjust instantly. Instead, spending and investments adapt...
Persistent link: https://www.econbiz.de/10012514567
We study the fiscal and tax response to intergovernmental grants, exploiting quasi-experimental variation within Germany's fiscal equalization scheme triggered by Census revisions of official population counts. Municipal budgets do not adjust instantly. Instead, spending and investments adapt...
Persistent link: https://www.econbiz.de/10012518088
This paper estimates causal effects of intergovernmental grant effects on expenditures and tax revenues of all … the Philippines. We also show that there are heterogeneous flypaper effects, as the cities or high-income local government … units exhibit greater flypaper effects on public expenditure …
Persistent link: https://www.econbiz.de/10013234505
In a Regression Kink (RK) design with a finite sample, a confounding smooth nonlinear relationship between an assignment variable and an outcome variable around a threshold can be spuriously picked up as a kink and result in a biased estimate. In order to investigate how well RK designs handle...
Persistent link: https://www.econbiz.de/10010211390
Cooperative fiscal federalism needs a multi-level consent to decide on the allocation of intergovernmental transfers. We study how parliamentary representation of municipalities on the federal level influences the allocation of federal transfers to municipal governments under this type of...
Persistent link: https://www.econbiz.de/10013315289