Department of Political Science

Intergovernmental Grants and Public Expenditures: Evidence from a Survey Experiment

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The relationship between intergovernmental grants and public expenditures is one of the most studied phenomena in the local public finance literature. However, little is known about whether the impact of unconditional grants is fundamentally different from that of other sources of municipal revenue. We study this question by means of a large-scale randomized survey experiment among Danish local politicians, which allows for a comparison of the impact of changes in various sources of municipal revenue. Our findings challenge the conventional conception in the public finance literature that money works differently depending on which sector they are generated in. Instead, ideology plays an important role in explaining how local politicians want to allocate resources when faced with changes in local government revenue.
Original languageEnglish
JournalLocal Government Studies
Volume42
Issue2
Pages (from-to)189-207
Number of pages19
ISSN0300-3930
DOIs
Publication statusPublished - 2016

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