Aragon, Fernando (2009) The flypaper effect revisited. Economic Organisation and Public Policy Discussion Papers (EOPP 004). Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.
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Abstract
This paper argues that there is nothing anomalous about the flypaper effect. I develop a simple median voter model of government spending with costly tax collection that predicts the flypaper effect and provide a quantifiable measure of its magnitude. Using the model insights and previous estimates, I show that a tax rate between 8% to 16% would account for the flypaper effect observed in U.S. subnational governments.
| Item Type: | Monograph (Report) |
|---|---|
| Official URL: | http://sticerd.lse.ac.uk/ |
| Additional Information: | © 2009 The Author |
| Divisions: | STICERD |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance |
| Date Deposited: | 24 Jul 2014 09:02 |
| Last Modified: | 12 Dec 2024 05:50 |
| URI: | http://eprints.lse.ac.uk/id/eprint/58199 |
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