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On the effects of intergovernmental grants: a survey

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  • Manuel E. Lago
  • Santiago Lago-Peñas
  • Jorge Martinez-Vazquez

Abstract

This paper offers a comprehensive and updated review of the effects of intergovernmental grants. We focus on the main findings in the existing literature on the effects of intergovernmental grants on tax policy and choices, expenditure decisions, fiscal stability and behavioral choices, and political economy. The intricate nature of the subject , innately, does not allow for an all -inclusive survey, but we aim to provide a thorough examination and update of the most salient effects of intergovernmental grants, while indicating areas for further research.

Suggested Citation

  • Manuel E. Lago & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2022. "On the effects of intergovernmental grants: a survey," Working Papers. Collection A: Public economics, governance and decentralization 2204, Universidade de Vigo, GEN - Governance and Economics research Network.
    • Handle: RePEc:gov:wpaper:2204
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    More about this item

    Keywords

    Intergovernmental transfers; effects; fiscal decentralization.;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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