The “flypaper effect” in presence of spatial interdependence: evidence from Argentinean municipalities

2008 ◽  
Vol 44 (3) ◽  
pp. 453-466 ◽  
Author(s):  
Pablo Acosta
Keyword(s):  
Flypaper Effect ◽  
Spatial Interdependence

scholarly journals FLYPAPER EFFECT INCORPORATING SPATIAL INTERDEPENDENCE

2008 ◽  
Vol 20 (2) ◽  
pp. 86-102 ◽  
Author(s):  
Ajit Karnik ◽  
Mala Lalvani
Keyword(s):  
Flypaper Effect ◽  
Spatial Interdependence

Microenterprise growth and the flypaper effect: Evidence from a randomized experiment in Ghana

2014 ◽  
Vol 106 ◽  
pp. 211-226 ◽  
Author(s):  
Marcel Fafchamps ◽  
David McKenzie ◽  
Simon Quinn ◽  
Christopher Woodruff
Keyword(s):  
Randomized Experiment ◽  
Flypaper Effect

Measuring Fiscal Spillovers in Brazilian Municipalities

2021 ◽  
Vol 49 (2) ◽  
pp. 221-261
Author(s):  
Marcelo Castro ◽  
Enlinson Mattos
Keyword(s):  
Public Health ◽  
Local Population ◽  
Flypaper Effect ◽  
Local Economies ◽  
Fiscal Spillovers

This article documents fiscal spillovers after an exogenous increase in the main federal transfer to Brazilian municipalities. We explore that Municipalities’ Participation Fund is distributed according to the local population and abruptly changes at some thresholds. We disentangle spillovers using bordering municipalities near different cutoffs, showing that the flypaper effect in local economies can be partially explained by bordering municipalities’ grants—roughly 20 percent. Fiscal spillovers are generally positive, except for spending in public health and sanitation for some population ranges.

The flypaper sticks even when aid travels overseas

2021 ◽  
Vol 49 (5) ◽  
pp. 717-753
Author(s):  
Emily C. Marshall ◽  
James W. Saunoris ◽  
T. Daniel Woodbury
Keyword(s):  
Foreign Aid ◽  
Current Literature ◽  
Political Institutions ◽  
Median Voter ◽  
Public Spending ◽  
Government Expenditures ◽  
Flypaper Effect ◽  
Government Officials ◽  
Median Voter Model ◽  
Voting Mechanisms

This paper extends the current literature by considering the existence of the flypaper effect internationally, with donor countries supplying foreign aid to recipient countries. The flypaper effect refers to the empirical anomaly associated with intergovernmental grants stimulating government expenditures more than can be explained by a pure income effect. The results reveal evidence of flypaper behavior such that for recipient countries one dollar of foreign aid raises public spending by $0.21-$0.42, whereas an equal increase in domestic income raises government expenditures by only $0.09-$0.16. Furthermore, we exploit variation in political institutions across countries and find that the flypaper effect is most pronounced in less democratic countries and find no flypaper effect in more democratic countries. This suggests that government officials are more likely to behave as expected by the median voter model when they are held accountable. Furthermore, countries with proportional, rather than majority/plurality, voting mechanisms do not display flypaper behavior.

Spatial Interdependence in US Outward FDI into Africa, Latin America and the Caribbean

World Economy ◽  
2013 ◽  
Vol 37 (9) ◽  
pp. 1267-1289 ◽  
Author(s):  
Uwaoma G. Nwaogu ◽  
Michael Ryan
Keyword(s):  
Latin America ◽  
Outward Fdi ◽  
The Caribbean ◽  
Spatial Interdependence
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