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Asymmetries in the Response to Increases and Decreases in Intergovernmental Grants: Some Empirical Findings

Shama Gamkhar and Wallace Oates

National Tax Journal, 1996, vol. 49, issue 4, 501-12

Abstract: Uses aggregate time-series data to explore state and local budgetary responses to cuts in federal grant programs. Finds that the "flypaper effect" is two-way (spending falls in response to cuts by about the same magnitude as it rises in response to grant increases).

Date: 1996
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