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Budgetary Responses of Individual Governmental Units to Federal Grants

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  • H. M. Hardy

    (Treasury Board Secretariat, Ottawa)

Abstract

The literature on the effect of federal grants on subordinate governmental units' expenditures has generally focused on broad expenditure categories and on all state or state and local governments considered together rather than as individual units. The present study focuses on the effect of federal grants on the expenditure and revenue decisions of individual governmental units, with the dependent program area expenditures being regressed on the specific individual grants for which they are eligible. The estimated equations indicate that the two individual governmental units considered do not respond to federal grants in similar ways.

Suggested Citation

  • H. M. Hardy, 1976. "Budgetary Responses of Individual Governmental Units to Federal Grants," Public Finance Review, , vol. 4(2), pages 173-186, April.
  • Handle: RePEc:sae:pubfin:v:4:y:1976:i:2:p:173-186
    DOI: 10.1177/109114217600400204
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    References listed on IDEAS

    as
    1. Michas, Nicholas A, 1969. "Variations in the Level of Provincial-Municipal Expenditures in Canada: An Econometric Analysis," Public Finance = Finances publiques, , vol. 24(4), pages 597-617.
    2. Gramlich, Edward M, 1969. "State and Local Governments and Their Budget Constraint," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(2), pages 163-182, June.
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