The flypaper effect revisited
Fernando Aragon ()
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
This paper argues that there is nothing anomalous about the flypaper effect. I develop a simple median voter model of government spending with costly tax collection that predicts the flypaper effect and provide a quantifiable measure of its magnitude. Using the model insights and previous estimates, I show that a tax rate between 8% to 16% would account for the flypaper effect observed in U.S. subnational governments.
Keywords: flypaper effect; intergovernmental transfers; public finance; fiscal decentralization (search for similar items in EconPapers)
JEL-codes: J1 E6 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://eprints.lse.ac.uk/58199/ Open access version. (application/pdf)
Working Paper: Local Spending, Transfers and Costly Tax Collection (2012)
Working Paper: The Flypaper Effect Revisited (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:58199
Access Statistics for this paper
More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().