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The effects of change in grants-in-aid regime and cuts on grants on municipalities' expenditures in Finland

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  • Antti Moisio

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Abstract

In this paper the role of grants-in-aid in the Finnish municipal sector will be studied. Bearing in mind that there are important dynamic interrelationships between the taxing, spending decisions and grants-in-aid policy, an econometric analysis of the municipalities' expenditures using panel data will be carried out. Firstly, a comparison of two grants-in-aid systems, one based on matching grants and the other on general grants will be made. Secondly, an analysis of the effects of cuts on the municipalities' grants will be done.

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File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa98/papers/296.pdf
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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa98p296.

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Date of creation: Aug 1998
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Handle: RePEc:wiw:wiwrsa:ersa98p296

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  1. Hsiao,Cheng, 2003. "Analysis of Panel Data," Cambridge Books, Cambridge University Press, number 9780521522717, October.
  2. Philip J. Grossman, 1990. "The impact of federal and state grants on local government spending: A test of the fiscal illusion hypothesis," Development Research Unit Working Paper Series archive-11, Monash University, Department of Economics.
  3. Matz Dahlberg & Eva Johansson, 1998. "The revenues-expenditures nexus: panel data evidence from Swedish municipalities," Applied Economics, Taylor & Francis Journals, vol. 30(10), pages 1379-1386.
  4. Dollery, Brian E & Worthington, Andrew C, 1996. " The Empirical Analysis of Fiscal Illusion," Journal of Economic Surveys, Wiley Blackwell, vol. 10(3), pages 261-97, September.
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