FISCAL ILLUSION (THE FLYPAPER EFFECT) AND GOVERNMENT SPENDING IN AUSTRALIA* |
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Authors: | MARK F. STEWART |
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Affiliation: | Royal Melbourne Institute of Technology |
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Abstract: | Work in the US and Canada has found the flypaper effect to be evident at the national as well as the sub-national government level. This paper uses the methodology developed by Robert R. Logan (1986) to examine how the payment of inter-governmental grants has affected government expenditure in Australia. The analysis is of both the recipient and payee governments. |
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