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Different Forms of Outside Aid: a Collective-Choice Model for Predicting Effects On Local Educational Expenditure

Cyril F. Chang
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Cyril F. Chang: State University of New York at Fredonia

Public Finance Review, 1981, vol. 9, issue 3, 321-341

Abstract: This article presents a method for predicting the effects of different forms of outside aid on local educational expenditure. The predictive power of the suggested method is demonstrated with an experiment using district-level data collected for the State of Virginia. The paper also tests the recent theoretical results of David Bradford and Wallace Oates who have argued (1) that in a median-voter setting matching grants are more stimulative than lump sum grants of the same amount, and (2) that under certain conditions lump sum grants are equivalent in their effects to a reduction in federal and state personal taxes. The test results are favorable.

Date: 1981
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:9:y:1981:i:3:p:321-341

DOI: 10.1177/109114218100900305

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