Local Spending, Transfers and Costly Tax Collection
This paper studies the effect of costly taxation on the fiscal response of local governments to intergovernmental transfers. Using a panel dataset of Peruvian municipalities, I find robust evidence that central government's grants have a greater stimulatory effect in municipalities facing higher tax collection costs. The results are consistent with costly taxation partially explaining the flypaper effect.
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- Monica Singhal, 2006.
"Special Interest Groups and the Allocation of Public Funds,"
NBER Working Papers
12037, National Bureau of Economic Research, Inc.
- 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.
- van de Walle, Dominique & Ren Mu, 2007.
"Fungibility and the flypaper effect of project aid : micro-evidence for Vietnam,"
Policy Research Working Paper Series
4133, The World Bank.
- van de Walle, Dominique & Mu, Ren, 2007. "Fungibility and the flypaper effect of project aid: Micro-evidence for Vietnam," Journal of Development Economics, Elsevier, vol. 84(2), pages 667-685, November.
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