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On the Flypaper Theory of Local Government Response to Grants-in-Aid

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  • R R Barnett

    (Department of Economics and Related Studies, University of York, York Y01 5DD England)

Abstract

Positive models of local government response to grants-in-aid must be judged on their ability to give predictions which are supported by empirical findings. In this respect, one of the most widely used models of local response has recently been criticised because of the apparent lack of correspondence between one of its predictions and the empirical facts. This failure on the part of what is referred to in this paper as the conventional theory has led to the development of the flypaper theory of local fiscal response. It is suggested in this paper that the flypaper theory also gives a prediction which is not supported by the facts and thus cannot be seen as a suitable replacement for the conventional theory. It is further suggested that it is by no means clear that the criticism of the conventional theory which led to the attempt to replace it is well founded.

Suggested Citation

  • R R Barnett, 1985. "On the Flypaper Theory of Local Government Response to Grants-in-Aid," Environment and Planning C, , vol. 3(3), pages 341-348, September.
    • Handle: RePEc:sae:envirc:v:3:y:1985:i:3:p:341-348
    DOI: 10.1068/c030341
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    References listed on IDEAS

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    1. Barnett, Richard R, 1985. "An Analysis of Local Government Response to Grants-in-Aid: A Case of User Charges," Bulletin of Economic Research, Wiley Blackwell, vol. 37(2), pages 123-130, May.
    2. Martin McGuire, 1973. "Notes on Grants-in-Aid and Economic Interactions among Governments," Canadian Journal of Economics, Canadian Economics Association, vol. 6(2), pages 207-221, May.
    3. David F. Bradford & Wallace E. Oates, 1971. "The Analysis of Revenue Sharing in a New Approach to Collective Fiscal Decisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 85(3), pages 416-439.
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    Cited by:

    1. Orkhan ISMAYILOV, 2016. "Flypaper Nonprofits: Crowding In And Crowding Out Effects Of Grants On Nonprofit Finance," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 77-87, December.
    2. Orkhan ISMAYILOV, 2016. "Flypaper Nonprofits: Crowding In And Crowding Out Effects Of Grants On Nonprofit Finance," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 77-87, December.

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