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dc.contributor.authorKalb, Alexanderen_US
dc.date.accessioned2009-02-16T15:10:44Z-
dc.date.available2009-02-16T15:10:44Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/24747-
dc.description.abstractIn this paper we use a simple bureaucracy model of fiscal illusion to analyze the impact of intergovernmental grants on the cost efficiency of local jurisdictions. We find that a higher degree of redistribution within a system of fiscal equalization or an increase in the amount of grants received by a local jurisdiction leads to an extension of organizational slack or X-inefficiency in that jurisdiction. This theoretical prediction is tested by conducting an empirical analysis using a broad panel of German municipalities. The results of the empirical analysis are consistent with the theoretical findings and therefore support the existence of a negative incentive effect of intergovernmental grants on local authorities' cost efficiency.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 08-051en_US
dc.subject.jelH11en_US
dc.subject.jelH77en_US
dc.subject.ddc330en_US
dc.subject.keywordCost efficiencyen_US
dc.subject.keywordFiscal equalisationen_US
dc.subject.keywordIntergovernmental grantsen_US
dc.subject.keywordBureaucracyen_US
dc.subject.keywordStochastic frontier analysisen_US
dc.subject.keywordGerman municipalitiesen_US
dc.subject.stwFinanzausgleichen_US
dc.subject.stwKommunaler Finanzausgleichen_US
dc.subject.stwKommunalverwaltungen_US
dc.subject.stwBürokratietheorieen_US
dc.subject.stwTechnische Effizienzen_US
dc.subject.stwFiskalillusionen_US
dc.subject.stwWirtschaftlichkeiten_US
dc.subject.stwTheorieen_US
dc.subject.stwDeutschlanden_US
dc.subject.stworganizational slacken_US
dc.titleThe Impact of Intergovernmental Grants on Cost Efficiency: Theory and Evidence from German Municipalitiesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn571867065en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:7361-
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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