The Flypaper Effect Revisited

This paper argues that there is nothing anomalous about the flypaper effect. I develop a simple median voter model of government spending with costly tax collection that predicts the flypaper effect and provide a quantifiable measure of its magnitude. Using the model insights and previous estimates, I show that a tax rate between 8% to 16% would account for the flypaper effect observed in U.S. subnational governments

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Year of publication:	2010
Authors:	Aragon, Fernando M.
Publisher:	[2010]: [S.l.] : SSRN
Subject:	Flypaper-Effekt \| Flypaper effect \| Finanzausgleich \| Intergovernmental transfers \| Theorie \| Theory

Extent:	1 Online-Ressource (18 p)
Series:	LSE STICERD Research Paper ; No. EOPP004
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 2009 erstellt
Classification:	H71 - State and Local Taxation, Subsidies, and Revenue ; H77 - Intergovernmental Relations; Federalism
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013148237