TL;DR: In this article, the authors formalized and tested the notion that states' expenditures depend on the spending of similarly situated states, and they found that even after allowing for fixed state effects, year effects, and common random shocks among neighbors, a state government's level of per capita expenditure is positively and significantly affected by the expenditure levels of its neighbors.
TL;DR: In this paper, the authors present the flypaper effect, which states that the money appears to "stick where it hits" when it receives an unconditional grant from the federal government.
Abstract: What happens to a state's spending when it receives an unconditional grant from the federal government? The standard theoretical analysis predicts that the increase in spending will be the same as that generated by an equivalent increase in local incomes--or roughly 5-10 percent for most states. In contrast, numerous empirical analyses have found that spending increases by much more, with some estimates near 100 percent. This result is known as the 'flypaper effect,' since the money appears to 'stick where it hits.' The authors review this evidence as well as other studies that find similar behavior in firms.
TL;DR: In this article, the authors used the size of Community Oriented Policing Services (COPS) grants as an instrument for measuring the police force in regressions where crime is the outcome of interest and found that police added to the force by COPS generated statistically significant reductions in auto thefts, burglaries, robberies, and aggravated assaults.
TL;DR: The authors found that state and local revenue efforts initially are unaffected by Title I changes, but that local governments substantially and significantly crowd out changes in Title I within in a 3-year period.
TL;DR: In this paper, the impact of a school feeding program on child caloric intake in the Philippines using a quasi-experimental methodology was investigated and the empirical results confirm an intra-household flypaper effect; indeed, they indicate virtually no intrahousehold reallocation of calories in response to the feeding programme.
Abstract: Are public transfers targeted toward children neutralised by the household, as the theory of altruism implies, or is there an intrahousehold 'flypaper effect' whereby such transfers 'stick' to the child? This paper studies the impact of a school feeding programme on child caloric intake in the Philippines using a quasi-experimental methodology. The empirical results confirm an intrahousehold flypaper effect; indeed, they indicate virtually no intrahousehold reallocation of calories in response to the feeding programme. In poorer households, however, children's gains from the programme appear to be 'taxed' more heavily.