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The Effect Of Intergovernmental Grants On Local Government Spending And Production Decisions: A Preliminary Econometric Model

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  • Savage, John F.
  • Weber, Bruce A.

Abstract

OLS regression results from a theoretically based model of county spending indicate that mental health (NH) grants stimulate NH spending. 3SLS regression estimates of a simultaneous NH wage-labor-output model indicate that grants stimulate NH employment, that wages are not endogenous, and that production relationships need better specification.

Suggested Citation

  • Savage, John F. & Weber, Bruce A., 1979. "The Effect Of Intergovernmental Grants On Local Government Spending And Production Decisions: A Preliminary Econometric Model," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278316, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea79:278316
    DOI: 10.22004/ag.econ.278316
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    Research Methods/ Statistical Methods;

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