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The effects of change in grants-in-aid regime and cuts on grants on municipalities' expenditures in Finland

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  • Antti Moisio

Abstract

In this paper the role of grants-in-aid in the Finnish municipal sector will be studied. Bearing in mind that there are important dynamic interrelationships between the taxing, spending decisions and grants-in-aid policy, an econometric analysis of the municipalities' expenditures using panel data will be carried out. Firstly, a comparison of two grants-in-aid systems, one based on matching grants and the other on general grants will be made. Secondly, an analysis of the effects of cuts on the municipalities' grants will be done.

Suggested Citation

  • Antti Moisio, 1998. "The effects of change in grants-in-aid regime and cuts on grants on municipalities' expenditures in Finland," ERSA conference papers ersa98p296, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa98p296
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    References listed on IDEAS

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    1. Philip J. Grossman, 1990. "The Impact of Federal and State Grants on Local Government Spending: a Test of the Fiscal Illusion Hypothesis," Public Finance Review, , vol. 18(3), pages 313-327, July.
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    3. Filimon, Radu & Romer, Thomas & Rosenthal, Howard, 1982. "Asymmetric information and agenda control : The bases of monopoly power in public spending," Journal of Public Economics, Elsevier, vol. 17(1), pages 51-70, February.
    4. Badi H. Baltagi, 2021. "Econometric Analysis of Panel Data," Springer Texts in Business and Economics, Springer, edition 6, number 978-3-030-53953-5, December.
    5. Matz Dahlberg & Eva Johansson, 1998. "The revenues-expenditures nexus: panel data evidence from Swedish municipalities," Applied Economics, Taylor & Francis Journals, vol. 30(10), pages 1379-1386.
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