@techreport{Hauptmeier2007Intergovernmental,
abstract = {This paper uses a simple model of fiscal competition between local jurisdictions to analyse the impact of intergovernmental grants on the composition of public spending. We find that a higher degree of redistribution within a system of ?fiscal equalisation? coincides with a smaller overall share of spending on productivity-enhancing public inputs. Furthermore, in order to test the theoretical predictions, we carry out an empirical analysis based on a panel of German states. The results are consistent with the theoretical findings and support the existence of an incentive effect of intergovernmental grants on state expenditure policies.},
address = {Mannheim},
author = {Sebastian Hauptmeier},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H72; H77; 330; Fiscal competition; Fiscal equalisation; Intergovernmental grants; Public expenditure; Germany},
language = {eng},
number = {07-006},
publisher = {Zentrum f\"{u}r Europ\"{a}ische Wirtschaftsforschung (ZEW)},
title = {Intergovernmental grants and public input provision: theory and evidence from Germany},
type = {ZEW Discussion Papers},
url = {http://hdl.handle.net/10419/24556},
year = {2007}
}
