Expenditure Effects of Intergovernmental Transfers – the Case of Slovenia

The purpose of this paper is to provide the evidence on the "stickiness" of intergovernmental transfers. Namely, intergovernmental transfers have fiscal (expenditure) effects as they stimulate provision of local government goods and services, and this expenditure effect should be larger fo...

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Main Author: Primož Pevcin
Format: Article
Language:English
Published: University of Ljubljana Press (Založba Univerze v Ljubljani) 2011-12-01
Series:Central European Public Administration Review
Subjects:
Online Access:https://journals.uni-lj.si/CEPAR/article/view/20349
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author Primož Pevcin
author_facet Primož Pevcin
author_sort Primož Pevcin
collection DOAJ
description The purpose of this paper is to provide the evidence on the "stickiness" of intergovernmental transfers. Namely, intergovernmental transfers have fiscal (expenditure) effects as they stimulate provision of local government goods and services, and this expenditure effect should be larger for the matching grants and smaller for lump-sum transfers. It is also expected that this effect would be larger than the equivalent increase in local income, prediction labelled as fly-paper effect when related to lump-sum transfers. Empirical research for Slovenian municipalities provides the evidence that the magnitude of expenditure effects of various categories of intergovernmental transfers is substantially lower compared to international findings, and in some cases the effect is even smaller than the effect of per-capita income.
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institution Kabale University
issn 2591-2240
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language English
publishDate 2011-12-01
publisher University of Ljubljana Press (Založba Univerze v Ljubljani)
record_format Article
series Central European Public Administration Review
spelling doaj-art-efea716466be4ff0906d82839a99dde62025-01-22T10:55:17ZengUniversity of Ljubljana Press (Založba Univerze v Ljubljani)Central European Public Administration Review2591-22402591-22592011-12-019410.17573/cepar.v9i4.190Expenditure Effects of Intergovernmental Transfers – the Case of SloveniaPrimož PevcinThe purpose of this paper is to provide the evidence on the "stickiness" of intergovernmental transfers. Namely, intergovernmental transfers have fiscal (expenditure) effects as they stimulate provision of local government goods and services, and this expenditure effect should be larger for the matching grants and smaller for lump-sum transfers. It is also expected that this effect would be larger than the equivalent increase in local income, prediction labelled as fly-paper effect when related to lump-sum transfers. Empirical research for Slovenian municipalities provides the evidence that the magnitude of expenditure effects of various categories of intergovernmental transfers is substantially lower compared to international findings, and in some cases the effect is even smaller than the effect of per-capita income.https://journals.uni-lj.si/CEPAR/article/view/20349local public financesintergovernmental transfersexpenditure effect
spellingShingle Primož Pevcin
Expenditure Effects of Intergovernmental Transfers – the Case of Slovenia
Central European Public Administration Review
local public finances
intergovernmental transfers
expenditure effect
title Expenditure Effects of Intergovernmental Transfers – the Case of Slovenia
title_full Expenditure Effects of Intergovernmental Transfers – the Case of Slovenia
title_fullStr Expenditure Effects of Intergovernmental Transfers – the Case of Slovenia
title_full_unstemmed Expenditure Effects of Intergovernmental Transfers – the Case of Slovenia
title_short Expenditure Effects of Intergovernmental Transfers – the Case of Slovenia
title_sort expenditure effects of intergovernmental transfers the case of slovenia
topic local public finances
intergovernmental transfers
expenditure effect
url https://journals.uni-lj.si/CEPAR/article/view/20349
work_keys_str_mv AT primozpevcin expenditureeffectsofintergovernmentaltransfersthecaseofslovenia