IDEAS home Printed from
   My bibliography  Save this article

Asymmetry in the fly-paper effect of the national subsidy in Korea


  • Sangsoo Lim
  • Sanghoon Lee
  • Pilhyun Kim


Nowadays, Korean central government has concentrated increasing attention on welfare policy. Welfare payment which is delivered by local government relies on the national subsidy. The national subsidy, however, is a kind of conditional grants which is needed to match some financial resource of local governments. For this reason, the fiscal conditions of local governments may become worse off, as the amount of national subsidy increases. This phenomenon is called the ‘fly-paper effect’, and may be caused inefficiency of the intergovernmental grants. In this paper, we test whether there is any fly-paper effect in the national subsidy and, then, the asymmetry in the fly-paper effect.

Suggested Citation

  • Sangsoo Lim & Sanghoon Lee & Pilhyun Kim, 2017. "Asymmetry in the fly-paper effect of the national subsidy in Korea," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(4), pages 560-574, October.
  • Handle: RePEc:taf:rjapxx:v:22:y:2017:i:4:p:560-574
    DOI: 10.1080/13547860.2017.1312068

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:22:y:2017:i:4:p:560-574. 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: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.