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: Postbus 80510, 2508 GM Den Haag|
Phone: (070) 338 33 80
Fax: (070) 338 33 50
Web page: http://www.cpb.nl/
More information through EDIRC
References listed on IDEAS
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.:
- 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.
- 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.
- Monica Singhal, 2006. "Special Interest Groups and the Allocation of Public Funds," NBER Working Papers 12037, National Bureau of Economic Research, Inc.
- Robin Boadway & Anwar Shah, 2007. "Intergovernmental Fiscal Transfers : Principles and Practice," World Bank Publications, The World Bank, number 7171, July.
- 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.
- Pierre Koning, 2009. "Contracting welfare-to-work services: use and usefulness," CPB Discussion Paper 135, CPB Netherlands Bureau for Economic Policy Analysis.
- Howard A. Chernick, 1981. "Price Discrimination and Federal Project Grants," Public Finance Review, SAGE Publishing, vol. 9(4), pages 371-394, October.
- 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, 2006. "Intergovernmental Transfers and Decentralised Public Spending," OECD Journal on Budgeting, OECD Publishing, vol. 5(4), pages 111-158.
- Bernd Huber & Marco Runkel, 2003.
"Optimal Design of Intergovernmental Grants under Asymmetric Information,"
CESifo Working Paper Series
919, CESifo Group Munich.
- Bernd Huber & Marco Runkel, 2006. "Optimal Design of Intergovernmental Grants Under Asymmetric Information," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(1), pages 25-41, January.
- Huber, Bernd & Runkel, Marco, 2006. "Optimal design of intergovernmental grants under asymmetric information," Munich Reprints in Economics 19392, University of Munich, Department of Economics.
- 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.
- 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.
- 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.
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 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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.