Gutenberg Open Science: Price-shifting fungibility

Please use this identifier to cite or link to this item: http://doi.org/10.25358/openscience-6790

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DC Field	Value	Language
dc.contributor.author	Barbaro, Salvatore	-
dc.date.accessioned	2022-02-25T11:13:03Z	-
dc.date.available	2022-02-25T11:13:03Z	-
dc.date.issued	2022	-
dc.identifier.uri	https://openscience.ub.uni-mainz.de/handle/20.500.12030/6801	-
dc.description.abstract	Unconditional intergovernmental grants are popular with economists but increasingly rarely observed in practice. Conversely, earmarking grants became a common form of the centres’ support to states in federalist countries, though they are seriously flawed by welfare loss induced by the intended reallocation of states’ provision of goods and services. Conditional grants bring states’ governments a dilemma: intergovernmental grants increase states’ revenues and enhance welfare, but the revenue gain is paid with amendments on the expenditure side, which harms welfare. We introduce the notion of price-shifting fungibility. It describes the effect of grant-receiving states minimizing the distortionary impact of conditional grants by lowering the prices or quality of the targeted good. By reducing the expenditure for the subsidized good, states create financial leeway to promote goods and services other than the targeted interest. By doing so, they can compensate for the welfare loss caused by conditional grants. We provide a simple theoretical model and some empirical evidence.	en_GB
dc.language.iso	eng	de
dc.rights	CC BY	*
dc.rights.uri	https://creativecommons.org/licenses/by/4.0/	*
dc.subject.ddc	320 Politik	de_DE
dc.subject.ddc	320 Political science	en_GB
dc.subject.ddc	330 Wirtschaft	de_DE
dc.subject.ddc	330 Economics	en_GB
dc.title	Price-shifting fungibility	en_GB
dc.type	Zeitschriftenaufsatz	de
dc.identifier.doi	http://doi.org/10.25358/openscience-6790	-
jgu.type.contenttype	Scientific article	de
jgu.type.dinitype	article	en_GB
jgu.type.version	Published version	de
jgu.type.resource	Text	de
jgu.organisation.department	FB 03 Rechts- und Wirtschaftswissenschaften	de
jgu.organisation.number	2300	-
jgu.organisation.name	Johannes Gutenberg-Universität Mainz	-
jgu.rights.accessrights	openAccess	-
jgu.journal.title	Regional studies, regional science	de
jgu.journal.volume	9	de
jgu.journal.issue	1	de
jgu.pages.start	93	de
jgu.pages.end	109	de
jgu.publisher.year	2022	-
jgu.publisher.name	Taylor & Francis	de
jgu.publisher.place	London	de
jgu.publisher.issn	2168-1376	de
jgu.organisation.place	Mainz	-
jgu.subject.ddccode	320	de
jgu.subject.ddccode	330	de
jgu.publisher.doi	10.1080/21681376.2022.2030789	de
jgu.organisation.ror	https://ror.org/023b0x485
Appears in collections:	JGU-Publikationen

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