The marginal cost of public funds and the flypaper effect... Contrary to the assertions of Mieszkowski (1994) and Hines and Thaler (1995), a model of a benevolent local government financing its expenditures with a distortionary tax predicts flypaper effects from lump-sum grants that are similar to those observed in many econometric studiesflypaper effect; marginal cost of public funds; intergovernmental grants; fiscal federalism
Streams, grants and pools: stakeholding, asset-based welfare and convertibility...i.e., the main normative questions to consider when designing a system permitting the mortgaging of income streams into lump-sum grants or pools.
Volunteer work and club size: nash equilibrium and optimality... When agents do not derive nonpecuniary benefits from volunteer work, lump-sum grants can be used to implement the first-best equal treatment allocation but private provision is fully crowded out....
Even some lump-sum grants can stimulate more than othersIn this paper, it is shown that the institutional context within which lump-sum grants are given can be an important determinant of local (or state) government expenditure responses to such grants....
