Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/24747 
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dc.contributor.authorKalb, Alexanderen
dc.date.accessioned2009-02-16T15:10:44Z-
dc.date.available2009-02-16T15:10:44Z-
dc.date.issued2008-
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
dc.language.isoengen
dc.publisher|aZentrum für Europäische Wirtschaftsforschung (ZEW) |cMannheimen
dc.relation.ispartofseries|aZEW Discussion Papers |x08-051en
dc.subject.jelH11en
dc.subject.jelH77en
dc.subject.ddc330en
dc.subject.keywordCost efficiencyen
dc.subject.keywordFiscal equalisationen
dc.subject.keywordIntergovernmental grantsen
dc.subject.keywordBureaucracyen
dc.subject.keywordStochastic frontier analysisen
dc.subject.keywordGerman municipalitiesen
dc.subject.stwFinanzausgleichen
dc.subject.stwKommunaler Finanzausgleichen
dc.subject.stwKommunalverwaltungen
dc.subject.stwBürokratietheorieen
dc.subject.stwTechnische Effizienzen
dc.subject.stwFiskalillusionen
dc.subject.stwWirtschaftlichkeiten
dc.subject.stwTheorieen
dc.subject.stwDeutschlanden
dc.subject.stworganizational slacken
dc.titleThe Impact of Intergovernmental Grants on Cost Efficiency: Theory and Evidence from German Municipalities-
dc.typeWorking Paperen
dc.identifier.ppn571867065en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:zewdip:7361en

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