Not logged in.

Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Fiscal transfers, local government, and entrepreneurship
Organization Unit
  • Piotr Danisewicz
  • Steven Ongena
Item Subtype Original Work
Refereed Yes
Status Published in final form
  • English
Journal Title Journal of Policy Analysis and Management
Publisher Wiley-Blackwell Publishing, Inc.
Geographical Reach international
ISSN 0276-8739
Volume 43
Number 3
Page Range 818 - 845
Date 2024
Abstract Text Can local government spending spur entrepreneurial activity? To answer this question, we study a setting where, around multiple pre‐determined and non‐manipulable thresholds, municipalities with lower tax revenues receive direct and different monetary grants from the national budget. Employing a fuzzy regression discontinuity design, we find a positive impact of fiscal transfers on the number of firms, especially sole proprietorships and small firms. The impact is stronger in municipalities where the opposition is more involved in the legislative process or more parties are represented in the municipal council.
Free access at DOI
Digital Object Identifier 10.1002/pam.22532
Other Identification Number merlin-id:24231
PDF File Download from ZORA
Export BibTeX