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Does the Flypaper Model Stick? A Test of the Relative Performance of the Flypaper and Conventional Models of Local Government Budgetary Behaviour

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  • Barnett, Richard R
  • Levaggi, Rosella
  • Smith, Peter

Abstract

Two of the most widely referred to models of local (or state) budgetary behavior are developed and tested. The models considered are a variant of the flypaper model (see, for example, Courant et al., 1979 and Oates, 1979) and a conventional model which builds on the seminal work of Wilde (1969, 1971). The models are developed in a manner which allows them to be tested empirically using data for English local government. Two types of test are employed: the ability of the two models to explain the variation in expediture levels across local governments within any given fiscal year; the ability of the models to predict future levels of expenditure given changes to local government budget constraints (as brought about, for example, by changes in grants-in-aid from central government). Copyright 1991 by Kluwer Academic Publishers

Suggested Citation

  • Barnett, Richard R & Levaggi, Rosella & Smith, Peter, 1991. "Does the Flypaper Model Stick? A Test of the Relative Performance of the Flypaper and Conventional Models of Local Government Budgetary Behaviour," Public Choice, Springer, vol. 69(1), pages 1-18, February.
    • Handle: RePEc:kap:pubcho:v:69:y:1991:i:1:p:1-18
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    1. repec:bla:rdevec:v:13:y:2009:i:s1:p:526-542 is not listed on IDEAS
    2. Stuart Landon, 1998. "Institutional Structure and Education Spending," Public Finance Review, , vol. 26(5), pages 411-446, September.
    3. Guy Gilbert, 1996. "Le fédéralisme financier, perspectives de microéconomie spatiale," Revue Économique, Programme National Persée, vol. 47(2), pages 311-363.
    4. F Revelli, 1999. "Local Public Expenditure with Piecewise-Linear Nonconvex Budget Constraints," Environment and Planning C, , vol. 17(2), pages 195-209, April.
    5. R R Barnett & R Levaggi & P Smith, 1991. "Even Some Lump-Sum Grants Can Stimulate More Than others," Environment and Planning C, , vol. 9(3), pages 257-265, September.
    6. Jean Mangan & Richard Ledward, "undated". "Local Authority Grants and the Flypaper effect in England," Working Papers 005, Staffordshire University, Business School.
    7. Mark McGillivray, 2005. "What determines African bilateral aid receipts?," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 1003-1018.
    8. Abdul Jalil, Ahmad Zafarullah, 2009. "Decentralization, Subnational Governments' Behaviour and Macroeconomic Instability: The Case of Malaysia," MPRA Paper 19071, University Library of Munich, Germany.
    9. R. K. Goel & M. A. Nelson, 2003. "Use or abuse of highway tax revenues? An economic analysis of highway spending," Applied Economics Letters, Taylor & Francis Journals, vol. 10(13), pages 813-819.

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