EconPapers    
Economics at your fingertips  
 

The "Flypaper Effect" Is Not an Anomaly

John Roemer () and Joaquim Silvestre

Journal of Public Economic Theory, 2002, vol. 4, issue 1, pages 1-17

Abstract: The empirical nonequivalence between grants by a central government and increases in community income (the "flypaper effect") has been considered anomalous. But the "anomaly" label is na*ve: in a multiconsumer community, equivalence demands an unlikely match of tax rules and income-growth patterns. We go beyond the single-policy-variable, median-voter model and apply Roemer's concept of Party Unanimity Nash Equilibrium, which allows for party competition in multidimensional policy spaces. We compute the equilibria for a model with two independent policy variables (intercept and slope of an affine tax schedule) and obtain numerical values that agree with the empirical literature. Copyright 2002 by Blackwell Publishing Inc.

Date: 2002
References: Add references at CitEc
Citations View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2002&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The 'Flypaper Effect' is not an anomaly (2003) Downloads
Working Paper: THE ‘FLYPAPER EFFECT’ IS NOT AN ANOMALY Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:jpbect:v:4:y:2002:i:1:p:1-17

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1097-3923

Access Statistics for this article

Journal of Public Economic Theory is currently edited by John P. Conley and Myrna Holtz Wooders

More articles in Journal of Public Economic Theory from Association for Public Economic Theory
Contact information at EDIRC.
Series data maintained by Wiley-Blackwell Digital Licensing ().

 
Page updated 2014-11-01
Handle: RePEc:bla:jpbect:v:4:y:2002:i:1:p:1-17