지방재정조정제도의 지출효과 분석: Flypaper Effect를 중심으로 = An Analysis of the Effects of Intergovernmental Grants on Local Expenditures

다국어 초록 (Multilingual Abstract)

This study analyzed the effects of intergovernmental grants on local government expenditures using pooled data from 54 cities from 1992 through 2000 in order to test the fly-paper effect in Korea. This paper analyzes the effect of important demographic, socioeconomic, financial and institutional factors on local government expenditure. Using simple OLS and pooled OLS, it finds that, generally speaking, these factors have significant influences on the local expenditure. Second, we find that the existence of the fly-paper effect in metropolitan areas. These findings imply that the fly-paper effect gives rise to inefficient management of the Jump-sum grant system.