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Structural Shifts in the Treatment of Intergovernmental Aid: The Case of Rural Roads

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  • Deller, Steven C.
  • Walzer, Norman

Abstract

The effects of structural shifts in the treatment of intergovernmental aid during the 1980s are tested using a sample of 1,929 rural counties with local road responsibilities. A dynamic model is used to test the hypothesis that local public officials treated intergovernmental aid differently after the Reagan/Bush policy of Fiscal Federalism was implemented. Empirical findings from the dynamic model are that Federal aid was much more stimulative at the end of the decade than in earlier years but the effects of state aid remained the same throughout the 1980s. These differences are attributed to a perception that Federal aid is less certain and more transitory than permanent.

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  • Deller, Steven C. & Walzer, Norman, 1995. "Structural Shifts in the Treatment of Intergovernmental Aid: The Case of Rural Roads," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 522-535, December.
    • Handle: RePEc:cup:jagaec:v:27:y:1995:i:02:p:522-535_02
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    4. Deller, Steven C. & Maher, Craig & Lledo, Victor, 2002. "Wisconsin Local Government, State Shared Revenues And The Illusive Flypaper Effect," Staff Papers 12599, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
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    8. Brown, Dennis M. & Flake, Oliver L., 1999. "Rural Transportation: An Annotated Bibliography," Miscellaneous Publications 323881, United States Department of Agriculture, Economic Research Service.

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