IDEAS home Printed from https://ideas.repec.org/a/sae/envirc/v4y1986i2p155-164.html
   My bibliography  Save this article

Central Grants to Local Governments: A Game Theoretic Approach

Author

Listed:
  • M M Barrow

    (School of Social Sciences, University of Sussex, Falmer, Brighton, Sussex BN1 9RH, England)

Abstract

The use of game theoretic concepts is applied to the theory of central grants to local governments, when the total amount of grants distributed by central government is constrained. It is shown that inefficiencies exist and that local governments spend too much on public services relative to the efficient level. This inefficiency is shown to disappear as the number of local governments increases. Relative to the situation where there is no central constraint on the total amount of grant available, it is demonstrated that a closed-ended grant results in less expenditure on local services.

Suggested Citation

  • M M Barrow, 1986. "Central Grants to Local Governments: A Game Theoretic Approach," Environment and Planning C, , vol. 4(2), pages 155-164, June.
    • Handle: RePEc:sae:envirc:v:4:y:1986:i:2:p:155-164
    DOI: 10.1068/c040155
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/c040155
    Download Restriction: no
    File URL: https://libkey.io/10.1068/c040155?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Martin McGuire, 1973. "Notes on Grants-in-Aid and Economic Interactions among Governments," Canadian Journal of Economics, Canadian Economics Association, vol. 6(2), pages 207-221, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ernesto Stein, 1999. "Fiscal Decentralization and Government Size in Latin America," Journal of Applied Economics, Universidad del CEMA, vol. 2, pages 357-391, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdul Jalil, Ahmad Zafarullah & Abdul Karim, Noor Al-Huda, 2009. "Understanding Malaysian State Governments Fiscal Behavior: The Role of Intergovernmental Transfers," MPRA Paper 25188, University Library of Munich, Germany.
    2. Philip J. Grossman, 1990. "The Impact of Federal and State Grants on Local Government Spending: a Test of the Fiscal Illusion Hypothesis," Public Finance Review, , vol. 18(3), pages 313-327, July.
    3. A Scott, 1987. "Wiseman on Federalism: A Critical Comment," Environment and Planning C, , vol. 5(4), pages 411-415, December.
    4. R R Barnett, 1985. "On the Flypaper Theory of Local Government Response to Grants-in-Aid," Environment and Planning C, , vol. 3(3), pages 341-348, September.
    5. Brennan, G. & Pincus, J. J., 1996. "A minimalist model of federal grants and flypaper effects," Journal of Public Economics, Elsevier, vol. 61(2), pages 229-246, August.
    6. J W Fossett, 1986. "Assessing City Responses to Federal Subventions," Environment and Planning C, , vol. 4(3), pages 289-298, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envirc:v:4:y:1986:i:2:p:155-164. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.