Fiscal Illusion (the Flypaper Effect) and Government Spending in Australia

Mark F Stewart

Australian Economic Papers, 1996, vol. 35, issue 67, 390-96

Abstract: Work in the US and Canada has found the flypaper effect to be evident at the national as well as the sub-national government level. This paper uses the methodology developed by Robert R. Logan (1986) to examine how the payment of inter-governmental grants has affected government expenditure in Australia. The analysis is of both the recipient and payee governments. Copyright 1996 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Date: 1996
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