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Fiscal Illusion at the Local Sphere: An Empirical Test of the Flypaper Effect using South African Municipal Data

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  • Hammed Amusa
  • Ramos Mabugu
  • Robert Mabunda

Abstract

Despite South Africa’s relatively decentralized governance and administrative structure, an important feature of the country’s intergovernmental fiscal relations system is the gap that exists between the expenditure responsibilities of sub-national authorities and their assigned revenue bases. The resulting vertical fiscal imbalance is mainly addressed via significant intergovernmental transfers to provinces and local governments. This factor […]

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  • Hammed Amusa & Ramos Mabugu & Robert Mabunda, 2008. "Fiscal Illusion at the Local Sphere: An Empirical Test of the Flypaper Effect using South African Municipal Data," Working Papers 072, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:072
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    More about this item

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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