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Matching Grant Versus Block Grants With Imperfect Information

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  • Singh, Nirvikar
  • Thomas, Ravi

Abstract

A matching grant for an input in public good production is compared with a block grant, where nonobservability of public good outputs and some inputs prevents the use of the optimal grant system. The welfare comparison is shown to depend on the technology of production. The second-best grant is also compared with the optimal grant.

Suggested Citation

  • Singh, Nirvikar & Thomas, Ravi, 1989. "Matching Grant Versus Block Grants With Imperfect Information," National Tax Journal, National Tax Association;National Tax Journal, vol. 42(2), pages 191-203, June.
  • Handle: RePEc:ntj:journl:v:42:y:1989:i:2:p:191-203
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    Download Restriction: Access to most recent volumes (current and past two years) is restricted to subscribers and members of the National Tax Association.

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    Cited by:

    1. Nechyba, Thomas, 1996. "A computable general equilibrium model of intergovernmental aid," Journal of Public Economics, Elsevier, vol. 62(3), pages 363-397, November.

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