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Fiscal Illusion and the Grantor Government in Canada

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  • Hammes, David L
  • Wills, Douglas T

Abstract

Recent work on the United States concludes that one or more illusions are responsible for the empirically observ ed "flypaper effect." Using annual Canadian data for the period 1962-84, the authors test the "single-illusion" and "dual-illusion" specifications currently in the literature. While the empirical res ults support the dual-illusion specification, it is not the unambiguo us choice over single-illusion specifications as previously found. Fu rther, the nature of the grant system in Canada raises questions abou t whether illusions or real factors produce the empirical results. Copyright 1987 by Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 25 (1987)
Issue (Month): 4 (October)
Pages: 707-13

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Handle: RePEc:oup:ecinqu:v:25:y:1987:i:4:p:707-13

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Cited by:
  1. Andrew Worthington & Brian Dollery, 1998. "The political determination of intergovernmental grants in Australia," Public Choice, Springer, vol. 94(3), pages 299-315, March.
  2. Dahlby, Bev, 2009. "The Marginal Cost of Public Funds and the Flypaper Effect," Working Papers 2009-17, University of Alberta, Department of Economics, revised 01 Jun 2010.
  3. Philippe Cyrenne & Manish Pandey, 2013. "Fiscal Equalization, Government Expenditures and Endogenous Growth," Departmental Working Papers 2013-03, The University of Winnipeg, Department of Economics.
  4. Sergey Sinelnikov & Pavel Kadochnikov & Ilya Trunin (ed.), 2006. "Fiscal Federalism in Russia: Soft Budget Constraints of Regional Governments," Books, Gaidar Institute for Economic Policy, edition 1, number 4, Winter.
  5. Sergey Sinelnikov & Pavel Kadochnikov & Ilya Trunin & Sergey Chetverikov & Marianne Vigneault, 2006. "Fiscal Federalism in Russia: Soft Budget Constraints of Regional Governments," Published Papers 47, Gaidar Institute for Economic Policy, revised 2012.

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