Abstract
Intergovernmental grants are payments from one level of government to another, such as from the federal government to a state government, or from a city to a school district. Theoretically, such grants allow more local choice in public goods provision than purely centralized provision would, while still enabling some redistribution across local jurisdictions. Empirical research on these grants has focused on the extent to which these grants ultimately affect spending by receiving jurisdictions, both on the intended programme area and overall, and on other unintended consequences of the grants.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Baicker, K., and D. Staiger. 2005. Fiscal shenanigans, targeted federal health care funds, and patient mortality. Quarterly Journal of Economics 120: 345–386.
Bailey, S.J., and S. Connolly. 1998. The flypaper effect: Identifying areas for future research. Public Choice 95: 335–361.
Cascio, E., N. Gordon, E. Lewis and S. Reber. 2005. Financial incentives and the desegregation of Southern schools. Working paper.
Cullen, J.B. 2003. The impact of fiscal incentives on student disability rates. Journal of Public Economics 87: 1557–1589.
Gramlich, E.M. 1977. Intergovernmental grants: A review of the empirical literature. In The political economy of fiscal federalism, ed. W.E. Oates. Lexington: Heath Publishers.
Gordon, N. 2004. Do federal funds boost school spending? Evidence from Title I. Journal of Public Economics 88: 1771–1792.
Gruber, J. 2005. Public finance and public policy. New York: Worth Publishers.
Hines, J.R., and R.H. Thaler. 1995. Anomalies: The flypaper effect. Journal of Economic Perspectives 9(4): 217–226.
Knight, B. 2002. Endogenous federal grants and crowd-out of state government spending: Theory and evidence from the federal highway aid program. American Economic Review 92: 71–92.
Ladd, H. 1992. State responses to the TRA86 revenue windfalls: A new test of the flypaper effect. Journal of Policy Analysis and Management 12: 82–103.
Oates, W.E. 1999. An essay on fiscal federalism. Journal of Economic Literature 37: 1120–1149.
Strumpf, K.S. 1998. A predictive index for the flypaper effect. Journal of Public Economics 69: 389–412.
Tiebout, C. 1956. A pure theory of local expenditures. Journal of Political Economy 64: 416–424.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Gordon, N.E. (2018). Intergovernmental Grants. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2497
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_2497
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences