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Federal Categorical Grants-in-Aid and State-Local Government Expenditures

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  • Bezdek, Roger H
  • Jones, Jonathan D

Abstract

The U.S. federal categorical grants system for state-local governments is examined. Unpublished government data are used to calculate that portion of state-local spending on aided services accounted for by federal funds in fiscal years 1983-84. The analysis shows that most federal categorical grants fail to induce grantee governments to purchase more aided services than they would otherwise. The authors argue that the use of open-ended, conditional grants, instead of closed-ended grants, would make it more likely that matching grants are used to increase expenditures on targeted social services.

Suggested Citation

  • Bezdek, Roger H & Jones, Jonathan D, 1988. "Federal Categorical Grants-in-Aid and State-Local Government Expenditures," Public Finance = Finances publiques, , vol. 43(1), pages 39-55.
  • Handle: RePEc:pfi:pubfin:v:43:y:1988:i:1:p:39-55
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    Cited by:

    1. Shama Gamkhar, 2000. "Is the Response of State and Local Highway Spending Symmetric to Increases and Decreases in Federal Highway Grants?," Public Finance Review, , vol. 28(1), pages 3-25, January.

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