Federal Categorical Grants-in-Aid and State-Local Government Expenditures

Roger H Bezdek and Jonathan D Jones

Public Finance = Finances publiques, 1988, vol. 43, issue 1, 39-55

Abstract: The U.S. federal categorical grants system for state-local governments is examined. Unpublished government data are used to calculate that portion of state-local spending on aided services accounted for by federal funds in fiscal years 1983-84. The analysis shows that most federal categorical grants fail to induce grantee governments to purchase more aided services than they would otherwise. The authors argue that the use of open-ended, conditional grants, instead of closed-ended grants, would make it more likely that matching grants are used to increase expenditures on targeted social services.

Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:pfi:pubfin:v:43:y:1988:i:1:p:39-55

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