FISCAL ILLUSION (THE FLYPAPER EFFECT) AND GOVERNMENT SPENDING IN AUSTRALIA.

Work in the US and Canada has found the flypaper effect to be evident at the national as well as the sub-national government level. This paper uses the methodology developed by Robert R. Logan (1986) to examine how the payment of inter-governmental grants has affected government expenditure in Australia. The analysis is of both the recipient and payee governments. [ABSTRACT FROM AUTHOR]