The Political Determination of Intergovernmental Grants in Australia
Intergovernmental grants have been conventionally explained on the basis of either equity/efficiency and/or institutional considerations. This paper seeks to model Australian intergovernmental grants by including both traditional public finance variables and public choice influences; that is, grants are used by federal government politicians to purchase political capital, thereby enhancing their own chances of reelection. The models employed in this paper are tested for six Australian states for the period 1981-82 to 1991-92 using unsystematic grant transfers. The results provide support for these public choice considerations and highlight the importance of incorporating institutional factors and controlling for misspecification in the error structure in estimates of this type. Copyright 1998 by Kluwer Academic Publishers
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Philip J. Grossman, 1990.
"The Impact of Federal and State Grants on Local Government Spending: a Test of the Fiscal Illusion Hypothesis,"
Public Finance Review,
, vol. 18(3), pages 313-327, July.
- P.J. Grossman, 1988. "The Impact of Federal and State Grants on Local Government Spending: A test of the fiscal illusion hypothesis," Economics Discussion / Working Papers 88-07, The University of Western Australia, Department of Economics.
- Philip J. Grossman, 1990. "The impact of federal and state grants on local government spending: A test of the fiscal illusion hypothesis," Monash Economics Working Papers archive-11, Monash University, Department of Economics.
- Hammes, David L & Wills, Douglas T, 1987. "Fiscal Illusion and the Grantor Government in Canada," Economic Inquiry, Western Economic Association International, vol. 25(4), pages 707-13, October.
- Wallis, John Joseph, 1991. "The Political Economy of New Deal Fiscal Federalism," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 510-24, July.
- Grossman, Philip J, 1994.
" A Political Theory of Intergovernmental Grants,"
Springer, vol. 78(3-4), pages 295-303, March.
- Mathews, Russell, 1985. "The Grants Commission's Relativities Proposals: A Comment," Australian Economic Papers, Wiley Blackwell, vol. 24(44), pages 214-17, June.
- Winer, Stanley L, 1983. "Some Evidence on the Effect of the Separation of Spending and Taxing Decisions," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 126-40, February.
- Wright, Gavin, 1974. "The Political Economy of New Deal Spending: An Econometric Analysis," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 30-38, February.
- Russell Davidson & James G. MacKinnon, 1980.
"Several Tests for Model Specification in the Presence of Alternative Hypotheses,"
378, Queen's University, Department of Economics.
- Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-93, May.
- Mel Bungey & Peter Kenyon & Philip J. Grossman, 1991. "Explaining intergovernmental grants: Australian evidence," Monash Economics Working Papers archive-14, Monash University, Department of Economics.
- Kirchgassner, Gebhard & Schimmelpfenning, Jorg, 1992. " Closeness Counts If It Matters for Electoral Victory: Some Empirical Results for the United Kingdom and the Federal Republic of Germany," Public Choice, Springer, vol. 73(3), pages 283-99, April.
- Logan, Robert R, 1986. "Fiscal Illusion and the Grantor Government," Journal of Political Economy, University of Chicago Press, vol. 94(6), pages 1304-18, December.
- Dennis Patrick Leyden, 1992. "Donor-Determined Intergovernmental Grants Structure," Public Finance Review, , vol. 20(3), pages 321-337, July.
When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:94:y:1998:i:3-4:p:299-315. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.