Asymmetric and Non-Linear Adjustments in Local Fiscal Policy

We analyse the revenue-expenditure patterns of local governments, allowing for asymmetric and non-linear adjustments of local spending and taxation to disequilibrium errors. Our results provide evidence of a downward inflexibility of both local government spending and local taxation, pointing to a budget-maximising local government.

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Year of publication:	2009
Authors:	Legrenzi, Gabriella Deborah
Institutions:	CESifo
Subject:	fiscal federalism \| fly-paper effect \| non-linear time-series \| asymmetric adjustment

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Extent:	application/pdf
Series:	CESifo Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 2550
Classification:	C22 - Time-Series Models ; H10 - Structure and Scope of Government. General ; H71 - State and Local Taxation, Subsidies, and Revenue
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005094407