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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.

Suggested Citation

  • 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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    Cited by:

    1. Laiyang Ke & Benedict S. Jimenez, 2024. "The interesting case of special and extraordinary items: What are they and how do they influence municipal government finances?," Public Budgeting & Finance, Wiley Blackwell, vol. 44(2), pages 69-89, June.
    2. Swenson, David & Deller, Steven C., 2001. "Devolution or Convolution? The Changing Relationship Between Federal, State and Local Governments," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 31(01), pages 1-27.
    3. 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.
    4. Laura Sour, 2013. "The flypaper effect in Mexican local government," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 28(1), pages 165-186.
    5. Steven C. Deller & Craig S. Maher, 2006. "A Model of Asymmetries in the Flypaper Effect," Publius: The Journal of Federalism, CSF Associates Inc., vol. 36(2), pages 213-229.
    6. A. M. Suha & P. S. Renjith, 2025. "Federal transfers and sub-national spending in India: an analysis of the stimulatory effect," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 30(1), pages 243-264, January.
    7. Juan González Alegre, 2012. "An evaluation of EU regional policy. Do structural actions crowd out public spending?," Public Choice, Springer, vol. 151(1), pages 1-21, April.
    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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