Dissertations / Theses on the topic 'Flypaper effect'

The purpose of this thesis is to examine whether there is a flypaper effect on the municipality’s welfare service expenditures, that is, if increased government grants will accelerate the welfare service expenditures more than increased tax revenues. The empirical analysis was made using a fixed effect model with data from all 290 municipalities in Sweden between 2011-2018. The results from the empirical model show that there is a flypaper the municipality’s welfare service expenditure, which is in line with the theoretical framework and previous literature. This result imply that the future welfare services will become more expensive if they are funded by increased government grants, rather than by increased tax revenues.

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The purpose of this study is to analyze the existence of the flypaper effect in the municipalities of CearÃ, for the year 2000. For this purpose, it was used the threshold model that through the construction of groups, divided the sample into 03 groups of municipalities, for each of the two variables used as threshold: salary and political strength. From the results obtained, concluded that there are groups that were not detected flypaper effect, but in most municipalities of Cearà this effect exists and is the result of distortions of intergovernmental transfers, which requires, among other aspects, a biggest fiscal effort of the municipalities and an expansion of fiscal decentralization started at Brazilian Constitution of 1988, aiming to mitigate flypaper.
PropÃe-se analisar a existÃncia do efeito flypaper nos municÃpios cearenses, para o ano de 2000. Para esse objetivo, utilizou-se do modelo threshold que, mediante o estabelecimento de grupos, dividiu a amostra em trÃs conjuntos de municÃpios, para cada uma das duas variÃveis utilizadas como threshold: salÃrio e forÃa polÃtica. Com base nos resultados, concluiu-se que hà grupos em que nÃo foi detectado efeito flypaper, mas, na maioria dos municÃpios cearenses, esse efeito existe e resulta das distorÃÃes das transferÃncias intergovernamentais, o que requer, dentre outros aspectos, um esforÃo fiscal maior dos municÃpios e uma expansÃo da descentralizaÃÃo fiscal iniciada na ConstituiÃÃo Brasileira de 1988, visando mitigar o flypaper.

We investigate the effect of general-purpose transfers on different expenditure categories and tax rates in the municipalities of Saxony (eastern Germany) and North Rhine-Westphalia (western Germany). Findings from the panel data analysis suggest the existence of the “flypaper effect” – municipalities use transfers to increase expenditures but do not reduce taxes. For most expenditure subcategories the estimated coefficients are alike, suggesting similarity of spending priorities in the two federal states despite the differences in the transfer dependency. Targeted support of eastern municipalities could potentially explain few identified differences in the spending behavior.

SEVERO FILHO, Francisco Ailson Alves. Análise do Flypaper e effect e sua variabilidade nos municípios cearenses. 2012. 42 f. Dissertação (mestrado profissional em economia do setor público) - Programa de Pós Graduação em Economia, CAEN, Universidade Federal do Ceará, Fortaleza-CE, 2012.
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The purpose of this study is to analyze the existence of the flypaper effect in the municipalities of Ceará, for the year 2000. For this purpose, it was used the threshold model that through the construction of groups, divided the sample into 03 groups of municipalities, for each of the two variables used as threshold: salary and political strength. From the results obtained, concluded that there are groups that were not detected flypaper effect, but in most municipalities of Ceará this effect exists and is the result of distortions of intergovernmental transfers, which requires, among other aspects, a biggest fiscal effort of the municipalities and an expansion of fiscal decentralization started at Brazilian Constitution of 1988, aiming to mitigate flypaper.
Propõe-se analisar a existência do efeito flypaper nos municípios cearenses, para o ano de 2000. Para esse objetivo, utilizou-se do modelo threshold que, mediante o estabelecimento de grupos, dividiu a amostra em três conjuntos de municípios, para cada uma das duas variáveis utilizadas como threshold: salário e força política. Com base nos resultados, concluiu-se que há grupos em que não foi detectado efeito flypaper, mas, na maioria dos municípios cearenses, esse efeito existe e resulta das distorções das transferências intergovernamentais, o que requer, dentre outros aspectos, um esforço fiscal maior dos municípios e uma expansão da descentralização fiscal iniciada na Constituição Brasileira de 1988, visando mitigar o flypaper.

We investigate how lump-sum equalization transfers affect expenditures and taxes in the municipalities of the largest German state North Rhine-Westphalia. In general, those general-purpose transfers cannot be treated as exogenous variables. Thus, for the identification of causal effects, two exogenous adjustments in the transfer allocation formula are used as instrumental variables. Findings suggest the existence of the “flypaper effect” – municipalities use transfers to increase expenditures but do not reduce tax rates. Extra money from transfers is mainly used to finance social expenditures and public facilities. A set of robustness checks, including a spatial dependence model, confirm the results.

nÃo hÃ
O efeito flypaper à um dos temas mais discutidos da literatura do federalismo fiscal, haja vista as distorÃÃes causadas pelo sistema de transferÃncias, pois os recursos advindos de transferÃncias tÃm um efeito mais estimulante sobre os gastos governamentais do que um aumento equivalente da renda privada da populaÃÃo residente. Diante disso, este trabalho, se propÃe a analisar se o comportamento dos gastos pÃblicos nos municÃpios cearenses condiz com a prÃtica definida pela literatura como efeito flypaper. Para tanto, utiliza-se da metodologia de dados em painel, uma vez que as informaÃÃes sobre gastos, arrecadaÃÃo, populaÃÃo, PIB e transferÃncias dos 184 municÃpios do Cearà compreende o perÃodo entre 1999 e 2009. Conforme os resultados aferidos pelo efeito marginal da renda, representados na funÃÃo gasto pelo PIB, supera o notado para a transferÃncia corrente. Pode-se concluir que a prÃtica descrita pela literatura como efeito flypaper nÃo condiz com a realidade das administraÃÃes municipais do CearÃ.
The flypaper effect is one of the most discussed topics of the literature of fiscal federalism, given that the distortions caused by the transfer system because the proceeds of transfers have a more stimulating effect on government spending than an equivalent increase in private income of the population resident. Therefore, this work aims to analyze the behavior of public expenditure in the municipalities of Cearà consistent with the practice adopted by the literature as flypaper effect. For this, we used the methodology of panel data, since the information about expenses, revenues, population, PIB and transfers of the 184 municipalities in Cearà covers the period between 1999 and 2009. According to the results measured by the marginal effect of income, represented by GDP spent in the function, overcomes noticed for the current transfer can be concluded that the practice described in the literature as flypaper effect is not consistent with the reality of municipalities in CearÃ.

The flypaper effect states that grants-in-aid increases public spending more than a comparable increase in personal income. If aid increases spending, then there is the possibility that it displaces own-source revenue or a portion of the aid itself is used to meet other priorities of governments, fungibility. Different local government structures have the tendency to prioritize either the operating or capital budget. Empirical evidence shows that federal and state grants have different flypaper effect. While fungible state aid is allocated to the operating budget, that of federal goes to the capital budget. Council-manager and mayor-council form of governments do not allocate fungible intergovernmental aid differently between the capital and operating budgets.

This paper investigates the effects of intergovernmental grants on municipal labour demand in Finland and Sweden during the period 1985-2002. Both these countries have large public sectors in which local authorities play a significant role. In addition, both countries went through major grant reforms in 1993, reforms that meant that most targeted grants were replaced by general, non-earmarked grants. This allows for studying the effects of the different types of grants separately. The results suggest that targeted grants affect Finnish municipal employment more than general ones do, at least when looking at levels. When looking at elasticities, however, the opposite is indicated. In Sweden intergovernmental grants appear to have no effect at all on municipal employment before the reform, but after the estimated elasticity is 0.10. This is somewhat lower than in Finland, where the estimated elasticities are 0.13 and 0.14 before and after the reform, respectively. The results also lend additional support to the so called “flypaper effect”, an empirical phenomenon that has been observed in numerous previous studies.

This dissertation consists of two independent essays on public economics. The first essay studies the consequences of fiscal decentralization on poverty and income inequalities. This essay describes the possible channels through which fiscal decentralization might affect poverty and income inequalities, and carries out an empirical analysis with data of a large number of countries at different stages of development, for the period 1971-2000. Fiscal decentralization is found to have significant effects on poverty and income inequalities. These findings are important because they suggest, contrary to the traditional public finance theory, that sub-national governments can play an important role in the reduction of poverty and income inequalities. The second essay studies the second best solution to the public expenditures’ problem in the presence of a proportional labor income tax. By allowing the tax base to vary with the taxpayers’ behavioral responses to taxation, we derive the “effective” budget constraint faced by the government, which describes the set of affordable combinations of public and private goods. We show that the optimal solution to the government problem corresponds to the point of tangency between the effective budget constraint and the highest attainable social indifference curve. The traditional normative prescription for public expenditures under a second-best scenario does not satisfy this condition, and therefore it provides a suboptimal solution. Finally, we use the same analytical framework in order to explain the flypaper effect, an empirical regularity that has for long challenged the conventional theory.

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CAPES - Coordenação de Aperfeiçoamento de Pessoal de Nível Superior
Em um país como o Brasil, marcado pelas desigualdades de renda pessoal e regional, o governo pode e deve utilizar políticas fiscais para tentar reduzir essas desigualdades. Caracterizado também por uma alta carga tributária e, por vezes, regressiva, a busca pela redução das desigualdades por meio de impostos no Brasil parece não surtir tanto efeito. Uma das formas para resolver esse problema seria focar nos gastos públicos de forma a tentar melhorar o bem-estar dos indivíduos brasileiros. Contudo, para tornar a política de gastos públicos eficiente é necessário conhecer as despesas municipais e entender as suas dinâmicas ao longo do tempo e do território brasileiro. Assim, essa tese busca verificar a existência de fenômenos que podem afetar o desempenho dos gastos públicos, sendo eles: efeito flypaper, race to the bottom (corrida para o fundo) e welfare migration (migração de bem-estar). O primeiro fenômeno ocorreria quando a sensibilidade dos gastos públicos fosse maior em relação a aumentos nas transferências intergovernamentais do que em relação a aumentos na renda local, se contrapondo ao Teorema do Eleitor Mediano. Já os outros dois fenômenos, a saber, race to the bottom e welfare migration, estariam ainda mais relacionados. Economistas argumentam que a migração de bem-estar (welfare migration) e a competição tributária poderiam gerar uma situação em que esses gastos municipais (direcionados a suprir a demanda de bens públicos) tenderiam a valores muito baixos, ou seja, a uma corrida para o fundo (ou, em inglês, race to the bottom). Na presença desses fenômenos, aconteceria uma interação espacial entre os gastos dos municípios com os gastos dos seus vizinhos. As análises da existência do efeito flypaper, da corrida para o fundo e da migração de bem-estar são feitas em dois ensaios para os municípios brasileiros. O primeiro contempla os anos 2000 e 2010 e analisa o efeito flypaper e suas variações, considerando a dependência financeira, a heterogeneidade espacial e desmembrando os gastos públicos entre despesas correntes e despesas de capital. Já o segundo ensaio busca indícios dos outros dois fenômenos nos mesmos anos, 2000 e 2010. Ambos usam dados em painel com correção espacial. Os principais resultados indicam a existência de efeito flypaper e de migração de bem-estar. Todavia, não são encontradas evidências de corrida para o fundo.
In a country like Brazil, marked by inequalities of personal and regional income, the government can use fiscal policy to try to reduce these inequalities. Also characterized by a high tax burden and sometimes regressive, the quest for reducing inequalities through taxes in Brazil seems not to take much effect. One way to solve this problem would be to use public expenditure in order to try to improve the welfare of Brazilian individuals. However, to make the expenditure policy effective is necessary to know the municipal expenditures and understand their dynamics over time and over Brazilian territory. Thus, this thesis seeks to verify the existence of phenomena that can affect the behavior and efficiency of public spending, namely: flypaper effect, race to the bottom and welfare migration. The first phenomenon occurs when public spending is more sensitivity to increases in intergovernmental transfers than to increases in local income, in contrast to Theorem of Median Voter. The other two phenomena, namely, race to the bottom and welfare migration, are still more related. Economists argue that the welfare migration and tax competition could lead to a situation in which these municipal expenditures (targeted to meet the demand for public goods) tend to very low values. In the presence of these phenomena, a spatial interaction between spending of municipalities with the spending of their neighbors takes place. Analysis of the existence of the flypaper effect, the race to the bottom and the welfare migration is done in two essays for the municipalities using spatial panel data. The first essay covers the years 2000 and 2010 and analyzes the flypaper effect considering the financial dependence, spatial heterogeneity and separating public expenditure between current and capital expenditures. The second one seeks for evidence of race to the bottom and welfare migration in the same years, 2000 and 2010. The main results indicate the existence of flypaper effect and welfare migration. However, there is no indication of race to the bottom.

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Despite what would be expected by a simple theoretical prediction, several empiric studies have verified that an increase of the grants-in-aid leads to greater public spending in comparison to an equivalent raise in the citizen’s income. One of the hypotheses for this phenomenon, known as the flypaper effect, is that the bureaucracy appropriates of grants through wages, which is consistent with the assumption raised by the literature that bureaucrats would be interested in maximizing their own budget and would take advantage of the information and power asymmetries compared to the electorate. This paper aims to investigate whether this assumption is demonstrated empirically for Brazilian municipalities, verifying the relationship between transfers and the wage differential between the public and private spheres. Therefore, we use municipalities’ data panel from 2002 to 2011 and an instrumental variables model. The wage differential is obtained through the Oaxaca Decomposition, which isolates the effect of individual characteristics in wages from the resource appropriation result. The results show that there are evidences of appropriation, not only when public and private sectors are compared as a whole, but also when subsectors are considered.
Ao contrário do que seria esperado em uma previsão teórica simples, diversos trabalhos empíricos têm verificado que um aumento das transferências intergovernamentais gera um gasto público maior do que uma elevação equivalente na renda dos indivíduos. Uma das hipóteses para este fenômeno, conhecido com o flypaper effect, é de que a burocracia se apropria das transferências por meio de salários, o que é condizente com o pressuposto de que os burocratas estariam interessados em maximizar seu próprio orçamento, e se aproveitariam da assimetria de informação e poder em relação ao eleitorado. Este trabalho tem o objetivo de investigar se tal pressuposto se comprova empiricamente para os municípios brasileiros, verificando a relação entre as transferências incondicionais e o diferencial de salários entre as esferas pública e privada. Para tanto, utilizamos um painel de municípios que cobre o período de 2002 a 2011 e um modelo econométrico de variável instrumental. Para medir o diferencial de salário, foi usada a Decomposição de Oaxaca, que separa o efeito das características individuais daquele que seria gerado pela apropriação. Os resultados apontam para a ocorrência de apropriação, considerando não só o setor público e privado formal como um todo, mas também seus subsetores.

This thesis proposes three distinct contribution to the field of economic analysis on local government. In particular, each of the three studies focuses on a specific Italian policy reform allowing us to analyze how it affects local fiscal policy decisions. In the first chapter we investigate the impact on expenditure of tax on principal dwellings before 2008 and the impact on expenditure of the grant which, after 2008, compensated for the abolition of the tax on principal dwellings. We setup a theoretical model in which the introduction of a political bias against taxation gives rise to the flypaper effect. If the public good is very important with respect to private consumption then an increase in the municipal size implies a decrease in the extent of the flypaper effect; the opposite happens if the public good is not important with respect to private consumption. We then test the hypotheses coming from the model by using data on Italian municipalities, focusing on two groups of expenditure: the principal expenditure, which are those essential to guarantee the minimum standard daily life of a municipality and the rest, defined as residual expenditure. We find that the flypaper effect holds for both kinds of expenditure, but decreases with respect to population in the case of principal expenditure and increases with respect to population in the case of residual expenditure. In the second chapter we setup a model in which the residents of two neighboring municipalities can use the services provided by public infrastructures located in both jurisdictions. If services are either complements or substitutes in use, the municipalities strategically interact when investing in infrastructures; moreover, when they differ in population size, the small municipality reacts more to the expenditure of its neighbor than the big one. The theoretical predictions are then tested by estimating the determinants of the stock of public infrastructures of the municipalities belonging to the Autonomous Province of Trento, in Italy. By introducing a spatial lag-error component, we find that municipalities positively react to an increase in infrastructures by their neighbors, but the effect tends to vanish above a given population threshold. Finally, in chapter 3 we use data for all Italian municipalities from 2001 to 2007 to empirically test the extent to which two different electoral rules, which hold for small and large municipalities, affect fiscal policy decisions at local level. Municipalities with fewer than 15,000 inhabitants elect their mayors in accordance with a single-ballot plurality rule where only one list can support her/him, while the rest of the municipalities uses a runoff plurality rule where multiple lists can support her/him. Per capita total taxes, charges and current expenditure in large municipalities are lower than in small ones if the mayor of the large municipality does not need a broad coalition to be elected, otherwise the use of a single- or double-ballot rule does not make any difference in the policy outcome.

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This paper empirically studies some determinants of the intergovernmental transfers in the Brazilian health care sector. In particular, we discuss and investigate the existence of a positive relationship between municipal revenues and federal transfers received through Unified Health System (Sistema Único de Saúde – SUS) by municipalities. As SUS legislation associates mandatory spending in health of municipalities to a portion of its revenues, the phenomenon was also investigated in the light of the flypaper effect theory. The empirical analysis was based on the estimation of fixed effect panel models. We considered a panel of Brazilian municipalities from 2002 to 2010. Data was mostly obtained from Departamento de Informações do SUS (DATASUS) and Sistema de Informações sobre Orçamentos Públicos em Saúde (SIOPS), both from Ministry of Health of Brazil. Our results show that municipal tax revenue has indeed a positive and significant impact on receiving transfers. Considering the redistributive aspect, this relation may not be desirable. We argue about the possibility that the funds transferred by SUS are not sufficient, so that a financial compensation of the local governments would be required to cover programs and services in their entirety. We also identified some evidence that there may be political factors influencing receipt of funds from SUS.
Este trabalho estuda empiricamente alguns fatores determinantes das transferências intergovernamentais na área da saúde no Brasil. Em especial, discute e investiga a existência de uma relação positiva entre arrecadação municipal e o recebimento de recursos federais através do Sistema Único de Saúde (SUS) pelos municípios brasileiros. Como a legislação do SUS atrela gastos dos municípios obrigatórios em saúde a uma parcela de sua arrecadação, o fenômeno também pôde ser investigado à luz da teoria do flypaper effect. A análise empírica foi realizada através da estimação de modelos em painel com efeitos fixos. Para tanto, utilizou-se dados dos municípios brasileiros no período de 2002 a 2010, obtidos, em sua maioria, através do Departamento de Informações do SUS (DATASUS) e do Sistema de Informações sobre Orçamentos Públicos em Saúde (SIOPS), ambos do Ministério da Saúde. Os resultados apontam que a arrecadação municipal exerce, de fato, um impacto positivo e significante sobre o recebimento de transferências. Considerando o aspecto redistributivo, essa relação pode não ser desejável. Argumentamos sobre a possibilidade de que os recursos repassados pelo SUS não sejam suficientes, de modo que uma contrapartida financeira dos governos locais seria necessária para cobrir os custos dos programas e serviços em sua totalidade. Foram identificados também indícios de que pode haver fatores políticos influenciando o recebimento de recursos do SUS.

CoordenaÃÃo de AperfeiÃoamento de Pessoal de NÃvel Superior
Em paÃses onde o sistema de governo possui um carÃter descentralizado observa-se uma forte dependÃncia de recursos provenientes das entidades superiores da federaÃÃo, por parte das esferas inferiores da administraÃÃo pÃblica. No Brasil, tal fato à confirmado pelo fato das transferÃncias intergovernamentais representarem, em mÃdia, um volume superior a 88% das receitas totais. Apesar da sua importÃncia na composiÃÃo das receitas das gestÃes municipais, o financiamento da atividade pÃblica via sistema de repasses intergovernamentais pode levar a prejuÃzos na gestÃo municipal. Dentre os principais transtornos que um regime federativo pode sofrer mediante o mecanismo de financiamento das esferas inferiores do governo via transferÃncias constitucionais estÃo o detrimento da utilizaÃÃo da base tributÃria individual e a realizaÃÃo de despesas sem compromisso com uma gestÃo de recursos equilibrada. Diante deste cenÃrio, o objetivo deste trabalho à analisar o impacto das transferÃncias intergovernamentais sobre o esforÃo fiscal e verificar a ocorrÃncia de prÃticas condizentes com a definiÃÃo do efeito flypaper. A descriÃÃo destas relaÃÃes dar-se-à por meio da tÃcnica de Vetores Auto-Regressivos e do modelo de regressÃes QuantÃlicas, ambos em suas versÃes para dados em painel. A base de dados utilizada à composta por informaÃÃes sobre a arrecadaÃÃo, PIB, populaÃÃo, transferÃncias correntes e gastos para 5.293 municÃpios brasileiros entre 1999 e 2009, extraÃdas da Secretaria do Tesouro Nacional e do Instituto Brasileiro de Geografia e EstatÃstica. Os resultados destacam que as transferÃncias afetam negativamente o esforÃo fiscal dos municÃpios brasileiros, e que nÃo foram observadas condiÃÃes que confirme a prÃtica do efeito flypaper pela administraÃÃo pÃblica municipal no Brasil. Por fim, verificou-se que os efeitos das transferÃncias sobre o comportamento fiscal dos municÃpios brasileiro nÃo sÃo expressos somente para uma anÃlise geral, mas sim, para diferentes quantis da distribuiÃÃo.
In countries where the government system has a decentralized character observes a strong dependence on resources from the higher authorities of the federation, by the lower spheres of government. In Brazil, this fact is confirmed by the fact that intergovernmental transfers represent, on average, a volume higher than 88% of total revenues. Despite its importance in the composition of revenues of municipal administrations, funding of public system via intergovernmental transfers can lead to losses in municipal management. The main inconvenience than a federal system may suffer through the funding mechanism of the lower spheres of government through constitutional transfers is the detriment to the use of the tax base and the realization of individual expenses without commitment to a balanced resource management. In this scenario, the objective of this work is to analyze the impact of intergovernmental grants on tax effort and verify the occurrence of practices consistent with the definition of the flypaper effect. The description of these relationships will give through the technique of Vector Autoregressive and quantile regressions model, in both its versions for panel data. The database used consists of information on the collection, GDP, population, expenditure and current transfers to 5,293 Brazilian municipalities between 1999 and 2009, drawn from the National Treasury and the Brazilian Institute of Geography and Statistics. The results highlight that transfers negatively affect the fiscal effort of municipalities, and that there were no conditions to confirm the practice of flypaper effect by the municipal government in Brazil. Finally, it was found that the effects of the transfer of the tax behavior of Brazilian cities are expressed not only for a general review, but for different quantile of the distribution.

State grants are perceived to mitigate the fiscal disparities among local governments in providing services. However, cutbacks in state grants as a result of changes in state grant policy in different states affect local expenditures dedicated to maintaining service provisions to citizens. This dissertation constructs a theoretical model to explain the extent to which and the ways in which types of state grants, revenue diversity, and form of local government impact local spending and the provision of public programs when local governments experience cuts in state grants. The dissertation also argues that when facing state grant cuts, local governments with a council-manager form of government and with higher revenue diversity will experience reduced change in local expenditures and that decreases in state categorical grants will lead to more cuts in distributive program expenditures. Given the diversity of state and local arrangements, this dissertation conducts a comparative and panel data study to test the hypotheses in 351 and 271 municipalities in Massachusetts and Colorado, respectively, in 2000 through 2008. The empirical results indicate that the form of government and the degree of revenue diversification have a greater impact on the local spending behaviors in Colorado than in Massachusetts. Meanwhile, decreases in state categorical grants lead to more cuts in distributive program expenditures in both Massachusetts and Colorado. This dissertation concludes that the theoretical model explains the effects of state grant reductions on local spending better in Colorado than it does in Massachusetts.

碩士
國立臺北大學
財政學系
98
The definition of flypaper effect is that when the central government increases one unit of general grants to the local government, it stimulates more local government spending than one unit of increase in citizen income. Inman (2008) summarized potential explanations for the flypaper effect from international studies, such as unexogenous project grant, omission of substantial variables, fiscal illusion and the politic contract of voters and candidates. Empirical studies by many researchers have shown that the flypaper effect is a common phenomenon in many countries; however, studies in Taiwan have so far been inconclusive. The purpose of this study is to determine the types of public financial and political circumstances that may induce the flypaper effect. This study investigated local public expenditures of 21 counties and cities in Taiwan; regression analysis on panel data was used and two empirical specifications were produced, based on the behavioral model of a local government agency proposed by Nagamine (1995). The first model is “Local government with full autonomy in the allocation of resources”, which was most commonly used in the investigation of flypaper effects; and the second model, revised by Nagmine, is “Local government authority does not have full autonomy in the allocation of resources”. Political and socio-economic factors were incorporated into both models in order to determine their effect on the occurrence of the flypaper effect in local government expenditure. Results of the study show that the flypaper effect always occurred under the traditional model (specification one), with or without political factors. There was no flypaper effect under the second specification, although political factors appeared to contribute to the extent to which the flypaper effect may occur. According to the results, whether or not the local government has the autonomy to allocate resources is the main determinant of the flypaper effect in Taiwan; the extent of the flypaper effect is influenced by political factors. In conclusion, if the central government wants to reduce the deficit of local governments, it should encourage local governments not to rely on grants from the central government.

碩士
國立臺北大學
公共行政暨政策學系
99
In previous related studies, most scholars focus their research on whether different kind of public expenditures will differ in the stickiness of expenditure, while there are others also take political factors into account to further analyze local governments’ expenditure behavior. This study investigates local public expenditure of 21 counties and cities in Taiwan during 2001 to 2009; regression analysis was based on panel data of public expenditures and socio-economic variables. Two different models of government authority assumption are being constructed base on the behavioral model of a local government agency proposed by Nagamine(1995). The first model is “Local government with full autonomy in the allocation of resources”, and the second model is “Local government authority does not have full autonomy in the allocation of resources”. Political and socio-economic factors were incorporated into both empirical models to investigate their effect on the occurrence of the flypaper effect in local government expenditure. Unlike previous empirical studies in Taiwan, this study takes central allotted-tax in replacing general grant to investigate the flypaper effect in Taiwan since part of the general grants were being limited in some specific expenditure, which cause it does not have the full quality of unconditional lump-sum grant. In addition, according to the associated authorities’ insight, the central government considers the combination of general grants and central allotted-tax as the whole subsidy to local government in practice. Thus, this study combines general grants and central allotted-tax to investigate the flypaper effect in Taiwan, instead of using general grants only. Results on the study show that the stimulating effect on public expenditure of subsidies was greater than income, yet the results is still not supportive enough to tell whether flypaper effect does exist in general assumption; if we assumed that the government does not have full autonomy of resource in Taiwan and consider the unconditional-alike central allotted-tax in replacing the general grants, the result would support the existence of flypaper effect in local government expenditure. Furthermore, the political factors are relatively stable explanatory variables, while the local election year has significantly positive and stable effect on local public expenditure.

El presente trabajo se centra en el análisis de los efectos de las transferencias provenientes de la provincia de Buenos Aires hacia los municipios que la conforman. Se investiga la incidencia de las mismas sobre el gasto total y su desagregación según finalidad y objeto del gasto. En este sentido, se testea la existencia de flypaper effect, bandwagonism effect y la hipótesis de asimetría. Para ello se utilizan regresiones de datos de panel mediante los cuales se confirma la existencia de flypaper effect, pero no del bandwagonism effect. Finalmente la evidencia sobre la hipótesis de asimetría es confirmada en el caso del Gasto Total siendo del tipo de Asimetría por “Inducción Fiscal” y es ambigua en el caso de desagregación del mismo dependiendo de cada caso particular.