Abstract The present study attempted to experimentally analyze the effect of fiscal illusion in the form of Flypaper effect on spending demand levels of provincial governments in Iran. To this aim, theoretical foundations and literature review were presented, and then the model used for investigation was specified. Finally, using time series data for provinces of Iran during 2000-2013 estimat...

This article examines fiscal illusions in public finance systems where decentralisation involving the introduction of an independent and autonomous component local government funding brings new problems. It presents a synthesis findings from Polish empirical study that set out to determine types extent illusion among councillors, focusing on qualitative aspects phenomenon. also compares with ot...

Following the present atmosphere of budgetary cuts in the OECD countries we analyze the effects of fiscal consolidation in the composition of government expenditures by functions. We modify a standard median voter demand model to incorporate a form of fiscal illusion based on the idea that voters-taxpayers may not be fully aware of the true composition of government expenditures because all typ...

Wallace E. Oates lectures at the Departmenr of Economics and Bureau of Business and Economic Research, U niversiry of Maryland. This chapter was written during sabbatical leave at Resources for the Future. I am grateful to RFF and to the Sloan Foundation for their support of this work. I am also indebted to Dennis Mueller, Paul Porrney, and Robert Schwab for some most helpful commenrs on an ear...