Flypaper Effect: The Colombian Municipalities Case for 2000-2017

José Marcelo Torres Ortega () and Jorge Mario Ortega De la Rosa ()
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José Marcelo Torres Ortega: Corporación Universitaria de la Costa
Jorge Mario Ortega De la Rosa: Universidad Autónoma del Caribe

Lecturas de Economía, 2022, issue 97, 79-111

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.

Keywords: decentralization; public expenditure; local government; federalism; central government. (search for similar items in EconPapers)
JEL-codes: H72 H77 P16 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:lde:journl:y:2022:i:97:p:79-111

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DOI: 10.17533/udea.le.n97a347575

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