The Impact of Intergovernmental Grants on the Aggregate Public Sector

Overview

The effects of the intergovernmental grant system have long been a topic of debate among politicians, economists, and political scientists. Until now, however, the question of the impact of grants on the aggregate public sector has been largely neglected. In this volume, Schwallie offers the first detailed study of the extent to which grants-in-aid have affected the size of government. In the process, he provides a good introduction to both the normative and positive theories of intergovernmental grants and a ...

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Overview

The effects of the intergovernmental grant system have long been a topic of debate among politicians, economists, and political scientists. Until now, however, the question of the impact of grants on the aggregate public sector has been largely neglected. In this volume, Schwallie offers the first detailed study of the extent to which grants-in-aid have affected the size of government. In the process, he provides a good introduction to both the normative and positive theories of intergovernmental grants and a useful summary of grants-in-aid research over the past 25 years. With the aid of economic models that analyze governmental fiscal decision making, econometric findings, and recent empirical studies, Schwallie develops a well-defined theory that explains how a system of intergovernmental grants might affect aggregate public sector size.

Schwallie relates models of fiscal decision making to the effect of intergovernmental grants on recipient government fiscal decisions and defines the optimal behavior of both grantor and recipient governments. Several chapters offer a measured critique of both the empirical research on intergovernmental grants and theoretical models proposed to explain grantor and recipient behavior. Finally, Schwallie proposes his own general equilibrium theory of intergovernmental grants, which not only explains the existence of intergovernmental grants, but also provides a structure for measuring their impact on aggregate public sector size. Tables, figures, and diagrams illustrate points made in the text. Students of public finance, economists, grant administrators, and policymakers will find this an illuminating discussion of the impact, focus, and implications of the present intergovernmental grant system.

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Product Details

  • ISBN-13: 9780899303888
  • Publisher: ABC-CLIO, Incorporated
  • Publication date: 5/15/1989
  • Pages: 174
  • Product dimensions: 6.14 (w) x 9.21 (h) x 0.44 (d)

Meet the Author

DANIEL P. SCHWALLIE is Assistant Professor of Economics at Case Western Reserve University.

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Table of Contents

Foreword by Thomas F. Pogue

The Intergovernmental Grant System in the United States

Modeling Intergovernmental Grants and Their Effects

Measuring the Effects of Intergovernmental Grants on Recipient Spending

Intergovernmental Grants and Grantor Fiscal Behavior

Intergovernmental Grants and the Aggregate Public Sector

Concluding Remarks

Bibliography

Index

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