Fiscal Illusion and the Grantor Government in Canada
AbstractRecent 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 InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 25 (1987)
Issue (Month): 4 (October)
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- 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.
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