Why Not Fully Spend a Conditional Block Grant?
This CPB Discussion Paper studies a conditional block grant that Dutch municipalities receive for welfare-to-work programs. Many municipalities do not fully use this grant, although programs are beneficial for them. We argue that municipalities incur expenses to use the grant. If these costs are substantial, then it is optimal not to fully use the grant. Based on municipality-specific data on grants and actual expenditures, we estimate that municipalities have to add about 90 cents from their own resources to spend 1 euro of the grant. As a result, the conditional block grant is de facto a closed-ended matching grant. � � � �
|Date of creation:||Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (070) 338 33 80
Fax: (070) 338 33 50
Web page: http://www.cpb.nl/
More information through EDIRC
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.:
- Huber, Bernd & Runkel, Marco, 2006.
"Optimal design of intergovernmental grants under asymmetric information,"
Munich Reprints in Economics
19392, University of Munich, Department of Economics.
- Bernd Huber & Marco Runkel, 2006. "Optimal Design of Intergovernmental Grants Under Asymmetric Information," International Tax and Public Finance, Springer, vol. 13(1), pages 25-41, January.
- Bernd Huber & Marco Runkel, 2003. "Optimal Design of Intergovernmental Grants under Asymmetric Information," CESifo Working Paper Series 919, CESifo Group Munich.
- Cashel-Cordo, Peter & Craig, Steven G., 1990.
"The public sector impact of international resource transfers,"
Journal of Development Economics,
Elsevier, vol. 32(1), pages 17-42, January.
- Cashel-Cordo, P. & Craig, S.G., 1988. "The Public Sector Impact Of International Resource Transfers," Papers 24, Houston - Department of Economics.
- Daniel Bergvall & Claire Charbit & Dirk-Jan Kraan & Olaf Merk, 2006.
"Intergovernmental Transfers and Decentralised Public Spending,"
OECD Working Papers on Fiscal Federalism
3, OECD Publishing.
- Daniel Bergvall & Claire Charbit & Dirk-Jan Kraan & Olaf Merk, 2005. "Intergovernmental Transfers and Decentralised Public Spending," OECD Journal on Budgeting, OECD Publishing, vol. 5(4), pages 111-158.
- Singhal, Monica, 2008.
"Special interest groups and the allocation of public funds,"
Journal of Public Economics,
Elsevier, vol. 92(3-4), pages 548-564, April.
- Monica Singhal, 2006. "Special Interest Groups and the Allocation of Public Funds," NBER Working Papers 12037, National Bureau of Economic Research, Inc.
- Singhal, Monica, 2006. "Special Interest Groups and the Allocation of Public Funds," Working Paper Series rwp06-004, Harvard University, John F. Kennedy School of Government.
- Howard A. Chernick, 1981. "Price Discrimination and Federal Project Grants," Public Finance Review, , vol. 9(4), pages 371-394, October.
- Alesha E. Doan & Deborah R. McFarlane, 2012. "Saying No to Abstinence-Only Education: An Analysis of State Decision-Making," Publius: The Journal of Federalism, Oxford University Press, vol. 42(4), pages 613-635, October.
- Craig Volden, 2007. "Intergovernmental Grants: A Formal Model of Interrelated National and Subnational Political Decisions," Publius: The Journal of Federalism, Oxford University Press, vol. 37(2), pages 209-243, Spring.
- Pierre Koning, 2009. "Contracting welfare-to-work services: use and usefulness," CPB Discussion Paper 135, CPB Netherlands Bureau for Economic Policy Analysis.
- Gordon, Nora, 2004. "Do federal grants boost school spending? Evidence from Title I," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1771-1792, August.
- Benedicta Marzinotto, 2011. "A European fund for economic revival in crisis countries," Policy Contributions 504, Bruegel.
- Robin Boadway & Anwar Shah, 2007. "Intergovernmental Fiscal Transfers : Principles and Practice," World Bank Publications, The World Bank, number 7171, October.
- David Card & Jochen Kluve & Andrea Weber, 2009. "Active Labor Market Policy Evaluations – A Meta-analysis," Ruhr Economic Papers 0086, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
When requesting a correction, please mention this item's handle: RePEc:cpb:discus:213. 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: ()
If references are entirely missing, you can add them using this form.