Ecological Fiscal Transfers and State-level Budgetary Spending in India: Analysing The Flypaper Effects

Amandeep Kaur, Ranjan Mohanty, Lekha S Chakraborty and Divy Rangan

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the empirical evidence of flypaper effects in the ecological fiscal spending in India. Using the panel data models, we analyse whether the intergovernmental fiscal transfers, or the states’ own income determine the expenditure commitments on ecology at the State level. The econometric results show that the intergovernmental fiscal transfers rather than the states’ own income determines ecological expenditure at subnational levels in India. The results hold, when the models are controlled for ecological outcomes and demographic variables.

Keywords: Intergovernmental Transfers; Flypaper effect; Environmental Economics; Macroeconomic Policy; National Government Expenditures (search for similar items in EconPapers)
JEL-codes: E6 H5 H7 Q5 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-env, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Ecological Fiscal Transfers and State-level Budgetary Spending in India: Analyzing the Flypaper Effects (2021)
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