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Structural Shifts In The Treatment Of Intergovernmental Aid: The Case Of Rural Roads

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  • Deller, Steven C.
  • Walzer, Norman

Abstract

The effects of structural shifts in the treatment of intergovernmental aid during the 1980s are tested using a sample of 1,929 rural counties with local road responsibilities. A dynamic model is used to test the hypothesis that local public officials treated intergovernmental aid differently after the Reagan/Bush policy of Fiscal Federalism was implemented. Empirical findings from the dynamic model are that federal aid was much more simulative at the end of the decade than in earlier years but the effects of state aid remained the same throughout the 1980s. These differences are attributed to a perception that federal aid is less certain and more transitory than permanent.

Suggested Citation

  • Deller, Steven C. & Walzer, Norman, 1995. "Structural Shifts In The Treatment Of Intergovernmental Aid: The Case Of Rural Roads," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    • Handle: RePEc:ags:joaaec:15283
    DOI: 10.22004/ag.econ.15283
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    References listed on IDEAS

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    1. Grossman, Philip J., 1989. "Intergovernmental Grants and Grantor Government Own-Purpose Expenditures," National Tax Journal, National Tax Association;National Tax Journal, vol. 42(4), pages 487-494, December.
    2. Bahl, Roy W. & Sjoquist, David L., 1990. "The State and Local Fiscal Outlook: What Have We Learned and Where Are We Headed?," National Tax Journal, National Tax Association;National Tax Journal, vol. 43(3), pages 321-342, September.
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    4. Bahl, Roy W. & Sjoquist, David L., 1990. "The State and Local Fiscal Outlook: What Have We Learned and Where Are We Headed?," National Tax Journal, National Tax Association, vol. 43(3), pages 321-42, September.
    5. Baumel, C. Phillip & Shornhorst, Eldo, 1983. "Local Rural Roads and Bridges: Current and Future Problems and Alternatives," Staff General Research Papers Archive 11669, Iowa State University, Department of Economics.
    6. Ladd, Helen F, 1990. "State Assistance to Local Governments: Changes during the 1980s," American Economic Review, American Economic Association, vol. 80(2), pages 171-175, May.
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    9. Deller, Steven C & Chicoine, David L & Walzer, Norman, 1988. "Economies of Size and Scope in Rural Low-Volume Roads," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 459-465, August.
    10. O'Brien, J. Patrick & Shieh, Yeung-Nan, 1990. "Utility Functions and Fiscal Illusion From Grants," National Tax Journal, National Tax Association;National Tax Journal, vol. 43(2), pages 201-205, June.
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    2. Laura Sour, 2013. "The flypaper effect in Mexican local government," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 28(1), pages 165-186.
    3. Swenson, David & Deller, Steven C., 2001. "Devolution or Convolution? The Changing Relationship Between Federal, State and Local Governments," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 31(01), pages 1-27.
    4. Deller, Steven C. & Maher, Craig & Lledo, Victor, 2002. "Wisconsin Local Government, State Shared Revenues And The Illusive Flypaper Effect," Staff Papers 12599, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    5. Steven C. Deller & Craig S. Maher, 2006. "A Model of Asymmetries in the Flypaper Effect," Publius: The Journal of Federalism, CSF Associates Inc., vol. 36(2), pages 213-229.
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    7. Brown, Dennis M. & Flake, Oliver L., 1999. "Rural Transportation: An Annotated Bibliography," Miscellaneous Publications 323881, United States Department of Agriculture, Economic Research Service.

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