Fiscal policy with multilevel governments

This paper analyzes the impact on federal fiscal policy of local government reactions in the short run. The various governments produce public goods using private sector inputs. Many of the results depend on complementarity or substitutability between public and private goods and the relative effici...

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Bibliographic Details
Published in:Regional science and urban economics 1991-05, Vol.21 (1), p.1-30
Main Authors: Possen, Uri M., Slutsky, Steven M.
Format: Article
Language:English
Subjects:
Economic models
Economic theory
Fiscal policy
Government
Impacts
Input output analysis
Local government
Policymaking
Public Finance
Public good
Studies
Citations: Items that this one cites
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Summary:This paper analyzes the impact on federal fiscal policy of local government reactions in the short run. The various governments produce public goods using private sector inputs. Many of the results depend on complementarity or substitutability between public and private goods and the relative efficiency of the governments. However, even when the local governments are as efficient as the federal government in production, an exact switch of activities from federal to local governments is not neutral since the different levels of government have different transactions needs.
ISSN:0166-0462
1879-2308
DOI:10.1016/0166-0462(91)90051-N