Category

Number of Access this item:293（2025-04-25 12:27 Counts）

Identifier to cite or link to this item: https://doi.org/10.15057/hje.2021002
Identifier to cite or link to this item: https://hdl.handle.net/10086/71929

Link to primary information 

File Format Size Views Description
cover_71929 pdf
HJeco0620100330 pdf 840 KB 283

Item Information

Output File

Title
Grant Effects on Public Finance for Local Governments with Self-selection Behavior
Creator
Creator Name
Mamaradlo, Marivic Delos Santos Mamaradlo, Marivic Delos Santos
Affiliation
Affiliation Name
National Economic and Development Authority
Creator Name
Tang, Cheng-Tao Tang, Cheng-Tao
Affiliation
Affiliation Name
International University of Japan
Creator Name
Wong, Chun Yee Wong, Chun Yee
Affiliation
Affiliation Name
International University of Japan
Key Word
intergovernmental grants
instrumental variable
self-selection
public finance
flypaper effect
JEL
C26
H71
H72
H77
R51
Abstract
This paper estimates causal effects of intergovernmental grants on local expenditure and tax revenue. This is done by utilizing a rule-based grant distribution scheme in the Philippines. The results provide evidence of a flypaper effect among both municipalities and cities in the Philippines, i.e., grants create a large stimulative effect on local spending but have no effect on the reduction of local taxation. The result is robust to a noticeable self-selection bias in the Philippine local governance, where a municipality can opt to convert to a city to receive more grants once it meets conversion criteria.
Publisher
Hitotsubashi University
Issued Date
2021-06
Language
English(eng)
Resource Type
departmental bulletin paper
Version Type
VoR
selfDOI
10.15057/hje.2021002
ISSN
2436-097X
NCID
AA12909202
Source Title
Hitotsubashi Journal of Economics
Volume Number
62
Issue Number
1
Page Start
33
Page End
58
Appears in Collections
Vol. 62, no. 1 (Jun. 2021)
URL
https://hdl.handle.net/10086/71929