FLYPAPER EFFECT: AN EMPIRICAL STUDY OF INDONESIA CASE (2004 – 2010)

INFO ARTHA ◽  
2017 ◽  
Vol 1 (1) ◽  
pp. 47-59
Author(s):  
Lili Mutiary
Keyword(s):  
Public Finance ◽  
Local Government ◽  
Empirical Study ◽  
Similar Increase ◽  
Flypaper Effect ◽  
Provincial Level ◽  
Intergovernmental Transfer

Flypaper effect is a well-known phenomenon in public finance with regard to intergovernmental transfer. It exists when an increase in grants is more stimulative than a similar increase in income towards the local government (recipient’s) expenditure. Numerous studies had occurred to both identify the existence of flypaper effect as well as to determine the cause. Most researchers worldwide disagree about the existence and even more disagree upon different results regarding the existence and the cause of different results. Two studies had been done in Indonesia within municipalities and they resulted in differing conclusions of the existence. This study is meant to identify flypaper effect within provincial level using what is hoped to be the proper way to investigate the existence.

Das Gemeindesteuersystem erneut auf dem Prüfstand. Ökonomische Bewertung der Erfolgsaussichten einer modifizierten Variante des Reformmodells der Stiftung Marktwirtschaft

2007 ◽  
Vol 56 (1) ◽  
Author(s):  
Thomas Döring
Keyword(s):  
Public Finance ◽  
Local Government ◽  
Public Choice ◽  
Current Situation ◽  
Political Discussion ◽  
Government Finance ◽  
Reform Initiatives ◽  
Tax System ◽  
Local Government Finance ◽  
German Cities

AbstractIn Germany, the current situation of local government finance is still worrying. Up to now, all political attempts to reform the German local tax system fundamentally led to no satisfying result. For this reason, new reform initiatives gain particular attention in scientific and political discussion. Against this background, the paper examines the proposal for reform of the existing local tax system presented by Stiftung Marktwirtschaft. By highlighting public finance characteristics of economically reasonable local government finances as well as public choice characteristics of a politically successful reform, it will be shown that within some small but important modifications the proposal of Stiftung Marktwirtschaft is in a position to solve local government finance problems in a durable manner. This result is consecuted by an empirical simulation of the fiscal effects for all German local authorities. The fiscal simulation demonstrates that more then ninety percent of German cities and municipalities will gain from a political implementation of the proposal for reform.

Reforming China's Public Finances to Sustain Growth

2014 ◽  
Vol 06 (02) ◽  
pp. 71-85
Author(s):  
Shuanglin LIN ◽  
Sarah Y TONG
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Local Government ◽  
Income Inequality ◽  
Government Expenditure ◽  
Public Spending ◽  
Government Debt ◽  
Environmental Problems ◽  
Policy Initiatives ◽  
Taxation System

China's public finance is characterised by a pro-growth taxation system, growth enhancing government expenditure and an expansionary fiscal policy. However, reforms are needed to tackle rising income inequality and worsening social and environmental problems, including more public spending and more progressive taxes. Measures are also needed to resolve rising local government debt. The recently concluded Third Plenum has made these its top priorities and announced various policy initiatives.

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