An Information Explanation for the Flypaper Effect
Amihai Glazer and
Marlon Boarnet
Working Papers from California Irvine - School of Social Sciences
Abstract:
We explain the plypaper effect (the tendency of a government's expenditures to increase by the amount of a grant it receives) as the result of rational calculations by voters who believe that a jurisdiction which won a grant is espatially competent. Similarly, a voter who sees that a neighboring jurisdiction got a grant which his jurisdiction dit not may reduce his estimate for the ability of the local officials, and therefore reduce his demand for local expenditures. Data on expenditures by states in the United States support the theory.
Keywords: INVESTMENTS; GOVERNMENT SPENDING POLICY (search for similar items in EconPapers)
JEL-codes: D70 D72 D79 H50 (search for similar items in EconPapers)
Pages: 15 pages
Date: 1996
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Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:calirv:95-96-6
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