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Flypaper Effect: The Colombian Municipalities Case for 2000-2017

Author

Listed:
  • José Marcelo Torres Ortega

    (Corporación Universitaria de la Costa)

  • Jorge Mario Ortega De la Rosa

    (Universidad Autónoma del Caribe)

Abstract

This article was elaborated to test the “flypaper effect” and the asymmetry effect of fiscal replacement in the municipalities of Colombia for the period 2000-2017. It was considered a municipalities analysis for all local government and another for the sixth category municipalities. For the analysis were used: effective cash operations, municipalities categorization, and population estimates. A Prais-Winsten econometric estimate was made with autocorrelation correction AR (1), giving the following results: for all municipalities, 1101 in total, the “flypaper effect” is not evident, however, when analyzing the 957 municipalities that belong to the sixth category (87 % of the total), the “flypaper effect” and the asymmetry effect are evident.

Suggested Citation

  • 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.
    • Handle: RePEc:lde:journl:y:2022:i:97:p:79-111
    DOI: 10.17533/udea.le.n97a347575
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    References listed on IDEAS

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    More about this item

    Keywords

    decentralization; public expenditure; local government; federalism; central government.;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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