The 'Flypaper Effect' in Presence of Spatial Interdependence : Evidence from Argentinean Municipalities

The 'Flypaper Effect' in Presence of Spatial Interdependence : Evidence from Argentinean Municipalities

The "flypaper effect", when an unconditional lump-sum grant to a local government increases spending in a greater proportion than an equivalent raise in local income, has been extensively documented in the literature. This paper shows new estimates in the presence of spatial dependence, wh...

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Bibliographic Details
Main Author: Acosta, Pablo
Format: Journal Article
Language:EN
Published: 2012
Subjects:
State and Local Taxation, Subsidies, and Revenue H710
State and Local Budget and Expenditures H720
Economic Development: Regional, Urban, and Rural Analyses
Transportation O180
Online Access:http://hdl.handle.net/10986/5513
id okr-10986-5513
recordtype oai_dc
spelling okr-10986-55132021-04-23T14:02:22Z The 'Flypaper Effect' in Presence of Spatial Interdependence : Evidence from Argentinean Municipalities Acosta, Pablo State and Local Taxation, Subsidies, and Revenue H710 State and Local Budget and Expenditures H720 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 The "flypaper effect", when an unconditional lump-sum grant to a local government increases spending in a greater proportion than an equivalent raise in local income, has been extensively documented in the literature. This paper shows new estimates in the presence of spatial dependence, when local spending is not independent from its neighbor jurisdictions' behavior. Using county-level data for Buenos Aires (Argentina), this study shows that while the "flypaper effect" still holds true in the presence of spillover effects or mimic behavior across jurisdictions, it could be overestimated in the presence of spatial interdependence. 2012-03-30T07:33:11Z 2012-03-30T07:33:11Z 2010 Journal Article Annals of Regional Science 05701864 http://hdl.handle.net/10986/5513 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic State and Local Taxation, Subsidies, and Revenue H710
State and Local Budget and Expenditures H720
Economic Development: Regional, Urban, and Rural Analyses
Transportation O180
spellingShingle State and Local Taxation, Subsidies, and Revenue H710
State and Local Budget and Expenditures H720
Economic Development: Regional, Urban, and Rural Analyses
Transportation O180
Acosta, Pablo
The 'Flypaper Effect' in Presence of Spatial Interdependence : Evidence from Argentinean Municipalities
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description The "flypaper effect", when an unconditional lump-sum grant to a local government increases spending in a greater proportion than an equivalent raise in local income, has been extensively documented in the literature. This paper shows new estimates in the presence of spatial dependence, when local spending is not independent from its neighbor jurisdictions' behavior. Using county-level data for Buenos Aires (Argentina), this study shows that while the "flypaper effect" still holds true in the presence of spillover effects or mimic behavior across jurisdictions, it could be overestimated in the presence of spatial interdependence.
format Journal Article
author Acosta, Pablo
author_facet Acosta, Pablo
author_sort Acosta, Pablo
title The 'Flypaper Effect' in Presence of Spatial Interdependence : Evidence from Argentinean Municipalities
title_short The 'Flypaper Effect' in Presence of Spatial Interdependence : Evidence from Argentinean Municipalities
title_full The 'Flypaper Effect' in Presence of Spatial Interdependence : Evidence from Argentinean Municipalities
title_fullStr The 'Flypaper Effect' in Presence of Spatial Interdependence : Evidence from Argentinean Municipalities
title_full_unstemmed The 'Flypaper Effect' in Presence of Spatial Interdependence : Evidence from Argentinean Municipalities
title_sort 'flypaper effect' in presence of spatial interdependence : evidence from argentinean municipalities
publishDate 2012
url http://hdl.handle.net/10986/5513
_version_ 1764395319394566144

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