1 Intergovernmental Transfers and the Flypaper Effect in Turkey

  • Isa Sagbas, Naci Tolga Saruc
  • Published 2003


Intergovernmental transfers can affect the level of local expenditures. Empirical studies indicate that lump sum grants have more stimulative effect on the level of public expenditures than local private income, which is termed as the flypaper effect. This study examines whether grants cause the flypaper effect in the face of linear budget constraint in… (More)

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