@article {Heyndels:2001:0003-6846:1329,
title = "Asymmetries in the flypaper effect: empirical evidence for the Flemish municipalities",
journal = "Applied Economics",
parent_itemid = "infobike://routledg/raef",
publishercode ="routledg",
year = "2001",
volume = "33",
number = "10",
publication date ="2001-08-20T00:00:00",
pages = "1329-1334",
itemtype = "ARTICLE",
issn = "0003-6846",
eissn = "1466-4283",
url = "https://www.ingentaconnect.com/content/routledg/raef/2001/00000033/00000010/art00012",
doi = "doi:10.1080/00036840010004536",
author = "Heyndels, Bruno",
abstract = "Recent empirical work on US governments indicates an asymmetry in the flypaper effect: the elasticity of public spending with respect to changes in grants differs significantly for positive and negative changes. Using a panel of data on Flemish municipalities covering the period 1989-1996, we also find clear evidence of asymmetrical reactions. More precisely, the results suggest the presence of a fiscal replacement type of asymmetry: when grants grow, municipalities spend most of the additional revenue. However, when grants fall, spending is unaffected and municipalities compensate the loss through additional taxation.",
}