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http://hdl.handle.net/10419/24556
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| Title: | | Intergovernmental grants and public input provision: theory and evidence from Germany  |
| Authors: | | Hauptmeier, Sebastian |
| Issue Date: | | 2007 |
| Series/Report no.: | | ZEW Discussion Papers 07-006 |
| 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. |
| Subjects: | | Fiscal competition Fiscal equalisation Intergovernmental grants Public expenditure Germany |
| JEL: | | H72 H77 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
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| dp07006.pdf | | 269.27 kB | Adobe PDF |
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