Kakamu, Kazuhiko; Yunoue, Hideo; Kuramoto, Takashi - In: Economic Modelling 37 (2014) C, pp. 500-506
The empirical work on local public finance has found that the marginal effect of lump-sum grants on expenditure is larger than that of income, thereby providing evidence of the “flypaper effect”. However, most existing studies only employ single equation models to test the flypaper effect....