Grant Effects on Public Finance for Local Governments with Self-selection Behavior

DOI IR (HANDLE) Open Access

Search this article

Description

This paper estimates causal effects of intergovernmental grants on local expenditure and tax revenue. This is done by utilizing a rule-based grant distribution scheme in the Philippines. The results provide evidence of a flypaper effect among both municipalities and cities in the Philippines, i.e., grants create a large stimulative effect on local spending but have no effect on the reduction of local taxation. The result is robust to a noticeable self-selection bias in the Philippine local governance, where a municipality can opt to convert to a city to receive more grants once it meets conversion criteria.

Journal

Related Projects

See more

Keywords

Details 詳細情報について

  • CRID
    1390853650403617408
  • NII Article ID
    120007089507
  • NII Book ID
    AA12909202
  • DOI
    10.15057/hje.2021002
  • HANDLE
    10086/71929
  • ISSN
    2436097X
  • Text Lang
    en
  • Article Type
    departmental bulletin paper
  • Data Source
    • JaLC
    • IRDB
    • CiNii Articles
    • KAKEN
  • Abstract License Flag
    Allowed

Report a problem

Back to top