caa a22 4500 477078370 CHVBK 20180405111444.0 cr unu---uuuuu 170330e19960101xx s 000 0 eng 10.1007/BF00114876 doi (NATIONALLICENCE)springer-10.1007/BF00114876 Becker Elizabeth Department of Economics, Clemson University, 29634-1309, Clemson, SC, U.S.A. aut The illusion of fiscal illusion: Unsticking the flypaper effect [Elektronische Daten] [Elizabeth Becker] Recognizing that it is difficult to prove a negative, this paper marshals evidence in support of the hypothesis that the widely documented flypaper effect of federal grants to state and local governments is purely a statistical artifact. A review of previous studies and a monte carlo investigation suggest that the use of an inappropriate functional form may generate an illusory flypaper effect. A local expenditure equation is then estimated in alternative specifications with ten years of state level data. Empirical results confirm the sensitivity of the flypaper effect to specification, and tests of fit unambiguously favor one functional form. That specification yields no statistical evidence of a flypaper effect. Kluwer Academic Publishers, 1996 Public Choice Kluwer Academic Publishers; gopher://gopher.wkap.nl 86/1-2(1996-01-01), 85-102 0048-5829 86:1-2<85 1996 86 11127 https://doi.org/10.1007/BF00114876 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF00114876 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Becker Elizabeth Department of Economics, Clemson University, 29634-1309, Clemson, SC, U.S.A aut NATIONALLICENCE 773 0- Public Choice Kluwer Academic Publishers; gopher://gopher.wkap.nl/ 86/1-2(1996-01-01), 85-102 0048-5829 86:1-2<85 1996 86 11127 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer