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An Information Explanation for the Flypaper Effect

Author

Listed:
  • Glazer, A.
  • Boarnet, M.G.

Abstract

We explain the plypaper effect (the tendency of a government's expenditures to increase by the amount of a grant it receives) as the result of rational calculations by voters who believe that a jurisdiction which won a grant is espatially competent. Similarly, a voter who sees that a neighboring jurisdiction got a grant which his jurisdiction dit not may reduce his estimate for the ability of the local officials, and therefore reduce his demand for local expenditures. Data on expenditures by states in the United States support the theory.

Suggested Citation

  • Glazer, A. & Boarnet, M.G., 1996. "An Information Explanation for the Flypaper Effect," Papers 95-96-6, California Irvine - School of Social Sciences.
    • Handle: RePEc:fth:calirv:95-96-6
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    Cited by:

    1. Bruno Heyndels, 2001. "Asymmetries in the flypaper effect: empirical evidence for the Flemish municipalities," Applied Economics, Taylor & Francis Journals, vol. 33(10), pages 1329-1334.

    More about this item

    Keywords

    INVESTMENTS; GOVERNMENT SPENDING POLICY;

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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