IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v124y2005i3p383-390.html
   My bibliography  Save this article

The dual illusion of grants-in-aid on central and local expenditures: A reply

Author

Listed:
  • Robert Logan
  • Yeung-Nan Shieh

Abstract

In this Journal, Chu [Chu, H. Y. (2003). Public Choice, 114: 349–359] offered corrections for “inconsistencies” in the Logan model of dual fiscal illusion.] Logan, R. R. (1986). Journal of Political Economy,94: 1304–1318]. This paper shows that Logan (1986) introduced two prevailing models of fiscal illusion and chose to follow one of them for generalization. Chu has not corrected any “inconsistencies”. He has instead offered a generalization of the other type of illusion. This paper demonstrates that the Chu generalization suffers from multiple irrational and unachievable results, which is why Logan (1986) chose the original version in the first place. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Robert Logan & Yeung-Nan Shieh, 2005. "The dual illusion of grants-in-aid on central and local expenditures: A reply," Public Choice, Springer, vol. 124(3), pages 383-390, September.
    • Handle: RePEc:kap:pubcho:v:124:y:2005:i:3:p:383-390
    DOI: 10.1007/s11127-005-2054-2
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11127-005-2054-2
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11127-005-2054-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Winer, Stanley L, 1983. "Some Evidence on the Effect of the Separation of Spending and Taxing Decisions," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 126-140, February.
    2. Robert Logan & J. O'Brien, 1989. "Fiscal illusion, budget maximizers, and dynamic equilibrium," Public Choice, Springer, vol. 63(3), pages 221-235, December.
    3. Wallace E. Oates & Wallace E. Oates, 2004. "An Essay on Fiscal Federalism," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 22, pages 384-414, Edward Elgar Publishing.
    4. Chu, Hong-Yih, 2003. "The Dual-Illusion of Grants-in-Aid on Central and Local Expenditures," Public Choice, Springer, vol. 114(3-4), pages 349-359, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alberto Porto, 2004. "Finanzas Públicas Locales en la Argentina," IIE, Working Papers 057, IIE, Universidad Nacional de La Plata.
    2. Santiago Lago-Peñas & Bruno Ventelou, 2006. "The Effects of Regional Sizing on Growth," Public Choice, Springer, vol. 127(3), pages 407-427, June.
    3. Bev Dahlby, 2011. "The marginal cost of public funds and the flypaper effect," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(3), pages 304-321, June.
    4. Lars P. Feld & Gebhard Kirchgässner & Christoph A. Schaltegger, 2010. "Decentralized Taxation and the Size of Government: Evidence from Swiss State and Local Governments," Southern Economic Journal, John Wiley & Sons, vol. 77(1), pages 27-48, July.
    5. Lars Feld & Christoph Schaltegger, 2005. "Voters AS A Hard Budget Constraint: On the Determination of Intergovernmental Grants," Public Choice, Springer, vol. 123(1), pages 147-169, April.
    6. Brian Knight, 2000. "The flypaper effect unstuck: evidence on endogenous grants from the Federal Highway Aid Program," Finance and Economics Discussion Series 2000-49, Board of Governors of the Federal Reserve System (U.S.).
    7. repec:spa:wpaper:2014wpecon03 is not listed on IDEAS
    8. Lauro Carnicelli & Fernando Antonio Slaibe Postali, 2014. "Oil windfalls and local fiscal effort: a propensity score analysis," Working Papers, Department of Economics 2014_03, University of São Paulo (FEA-USP).
    9. José Marcelo Torres Ortega & Jorge Mario Ortega De la Rosa, 2022. "Flypaper Effect: The Colombian Municipalities Case for 2000-2017," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 97, pages 79-111, July-Dece.
    10. Sivagnanam, K. Jothi, 2007. "Poverty Reduction by Decentralisation: A Case for Rural Panchyats in Tamil Nadu," MPRA Paper 3210, University Library of Munich, Germany.
    11. Torgler, Benno & Schneider, Friedrich & Schaltegger, Christoph A., 2007. "With or Against the People? The Impact of a Bottom-Up Approach on Tax Morale and the Shadow Economy," Berkeley Olin Program in Law & Economics, Working Paper Series qt6331x6vz, Berkeley Olin Program in Law & Economics.
    12. Zodrow, George R, 2003. "Tax Competition and Tax Coordination in the European Union," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(6), pages 651-671, November.
    13. Sigman, Hilary, 2003. "Letting States Do the Dirty Work: State Responsibility for Federal Environmental Regulation," National Tax Journal, National Tax Association;National Tax Journal, vol. 56(1), pages 107-122, March.
    14. Anastassios Chardas, 2012. "Multi-level governance and the application of the partnership principle in times of economic crisis in Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 56, Hellenic Observatory, LSE.
    15. Ines Helm & Jan Stuhler, 2024. "The Dynamic Response of Municipal Budgets to Revenue Shocks," American Economic Journal: Applied Economics, American Economic Association, vol. 16(4), pages 484-527, October.
    16. Benjamin Larin & Bernd Süssmuth, 2014. "Fiscal Autonomy and Fiscal Sustainability: Subnational Taxation and Public Indebtedness in Contemporary Spain," CESifo Working Paper Series 4726, CESifo.
    17. Kempf, Hubert & Rossignol, Stéphane, 2013. "National politics and international agreements," Journal of Public Economics, Elsevier, vol. 100(C), pages 93-105.
    18. Majid Maddah & Fozieh Jeyhoon-Tabar, 2016. "Studying the Flypaper Effect in the Provinces of Iran (2000-2013)," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(3), pages 339-354, Summer.
    19. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    20. Robert P. Inman, 2008. "Federalism's Values and the Value of Federalism," NBER Working Papers 13735, National Bureau of Economic Research, Inc.
    21. Sanz Labrador, Ismael & Sanz-Sanz, José Félix, 2013. "Política fiscal y crecimiento económico: consideraciones microeconómicas y relaciones macroeconómicas," Macroeconomía del Desarrollo 5367, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:124:y:2005:i:3:p:383-390. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.