text:
No Mr Howard, hindsight is not needed. Some of us knew at the time, said so, and were called "doddering daiquiri diplomats" for our pains.
730,000 kids in poverty @TurnbullMalcolm Please redeploy my taxes from supporting neg gearers "getting ahead" to lifting kids out of poverty
Immigration dressing its staff in paramilitary uniforms and decking them out with medals. Where were Gilbert & Sullivan when we needed them?
PM says CentreLink acting appropriately. But he says refugees on #Nauru and #Manus are treated appropriately, and Israeli settlements all OK
Breaking news: Alan Jones, who wanted to put Julia Gillard in a chaff bag & drop her in the sea, doesn't want Gladys Berejiklian for Premier


text:
Is Fitzgerald Commercials incorrect or missing key business information? Update your Hotfrog listing today.
Contact details
Are these details correct?
Hotfrog Ireland provides information regarding Fitzgerald Commercials in Midleton Cork. Fitzgerald Commercials is located at Youghal rd, Midleton Cork and provides transportation services. Contact them on (021) 463 3077 or by visiting them on their website http://www.fitzgeraldcommercials.ie.
Is Fitzgerald Commercials in Youghal rd, Midleton Cork your business? Claim your listing and attract more leads by adding more content, photos and other business details.
We have more transportation services in Midleton Cork available on Hotfrog Ireland. You can update your search for Midleton transportation by location, keyword or service options.
Enterprise Park Dwyers Rd Midleton Cork
54 St Mary's Road Midleton Cork
Bailick Rd Midleton Cork
Stone and Garden Depot Whiterock Midleton Cork
Small Business Hub
Sharing tips, ideas and advice to help grow your small business.
Create your free Hotfrog business profile
Follow Hotfrog on:
Share on:
Hotfrog Small Business Hub

subset: commoncrawl


text:
Don't Wait Another Minute. Discover XFINITY TV in Jasper, IN
One of the best ways to get affordable cable television in Jasper, IN is to get an XFINITY programming package from Comcast. What's better than getting all-digital channels? Getting a DVR to record all your favorite programs, as well as thousands of On Demand choices each month.
If you watch roughly 35 hours of television per week, you're like the majority of Jasper residents. Premium home television programming is about getting what you want. Subscribe to XFINITY in Jasper, IN and discover better TV. For sports fans, XFINITY brings the action home by offering local Jasper channels. You'll also get the latest Hollywood blockbusters and the most popular television shows. Call today to learn about XFINITY TV specials in your area.


text:
SSE announced as Women's FA Cup sponsor
08 Jun , 2015 by SSE
The Football Association and SSE today announced a new four-year title sponsorship deal for the largest cup competition in women's football, the Women's FA Cup.
The seven-figure deal includes a commitment to invest in the women's game with significant funding ring-fenced to create a country-wide programme of girls-only football activity. It also represents a landmark moment in the history of women's football with the first ever major sponsorship of the Women's FA Cup competition. It signals the growth and stature of the women's game.
Chelsea Ladies and Notts County Ladies will go head-to-head for the coveted trophy on Saturday 1 August, which will now be known as The SSE Women's FA Cup.
The final takes place at Wembley Stadium for the first time. It will serve as a curtain raiser to the 2015/16 season and kick off a weekend of back-to-back showpiece games with the FA Community Shield taking place the following day.
Fittingly, on the eve of England's World Cup campaign in Canada, over 100 girls descended on Wembley Stadium to mark the launch of the exciting partnership with SSE.
Commenting on the new deal, Heather Rabbatts, FA Board member and Chair of the Inclusion Advisory Board said:
"The FA is committed to ensuring that women's football gets the status and investment it deserves – the buzz of anticipation around the FIFA Women's World Cup is testimony to the appeal of the game.
"Similarly at grassroots, we as an organisation are committed to ensuring that there are access points for girls and women to enjoy the game across all levels and abilities. This agreement with SSE meets both these ambitions and gives us the opportunity to build on all that we have already achieved. Dreaming of playing at Wembley in The SSE Women's Cup Final can now be a reality for girls too."
Alan Young, SSE Managing Director of Corporate Affairs, said:
"We're entering this partnership with one simple ambition – to make a difference to the future of women's football and sport.
"SSE's investment will help drive the women's game forward and together with The FA we will help continue to grow the sport, giving thousands more girls regular access to 'the beautiful game'.
"We're already supporting the talent of tomorrow with our SSE Next Generation programme, helping 100 young athletes across Scotland, England, Wales, and Northern Ireland reach their potential.
"Bringing 100 girls here to Wembley is a fitting way to launch our partnership and inspire the footballers of the future."
Georgia Stanway, SSE Next Generation star and England U17 international said:
"I'm very proud SSE is now sponsoring the SSE Women's FA Cup.
"This partnership with SSE and The FA will allow many more young girls to experience football in a supportive environment with girls of a similar age. Through the Next Generation programme, SSE has already been a great support to me in my career and I'm delighted it will now be helping many more young girls develop a love and passion for the game."
This year, 259 teams entered the Women's FA Cup. Next season, entrants will resume rivalries from Sunday 6 September 2015 when First Round Qualifying takes place. The 2016 SSE Women's FA Cup Final will be played at Wembley Stadium on Saturday 14 May, 2016.


text:
The flypaper effect: Identifying areas for further research
- Jessica Flowers
- 1 years ago
- Views:
1 Public Choice 95: , Kluwer Academic Publishers. Printed in the Netherlands. 335 The flypaper effect: Identifying areas for further research STEPHEN J. BAILEY & STEPHEN CONNOLLY Department of Economics, Glasgow Caledonian University, Glasgow G4 0BA, Scotland, U.K. Accepted 31 October 1997 Abstract. The flypaper effect literature dates back three decades. It is overwhelmingly neoclassical in approach, attempting to improve the median voter demand model and/or temper it with public choice supply-side perspectives. Whilst this approach provided valuable early substantial analytical insights, more recent papers seem to have contributed only marginally to an understanding of the flypaper effect, if indeed it exists at all. Hence, as well as providing a long-overdue comprehensive review of the literature on the flypaper effect, this paper identifies more productive avenues for further research. 1. Introduction The flypaper effect relates to the impact on exhaustive expenditures of a general lump-sum grant paid by central to local government. The traditional theories of the effects of grants-in-aid showed how, in terms of the stimulatory effect on local government spending, a general lump-sum grant has the same effect as an equivalent increase in the disposable incomes of the individuals in the community. In the traditional theories, the increase in spending, by local governments and by their local citizens, on goods and services reflects only the preferences and utility functions of the latter. However, studies have shown that a general lump-sum grant to a community has a far greater stimulatory effect on local government spending than the equivalent increase in individual incomes. This is puzzling since the traditional theory assumes that local government expenditures (both in total and in terms of the distribution of spending across the various services provided) are determined through democratic vote-counting processes. In effect, it assumes that the local voting system clearly and consistently reflects the utility functions of the local community of voters and that local politicians and bureaucrats act in accordance with voting outcomes. Hence, the additional public expenditures generated by an increase in local voters disposable incomes or, alternatively, by an increase in lump-sum intergovernmental grants of the same monetary amount received by their local government, should be identical. The fact that empirical research finds that these outcomes are
2 336 not identical casts doubt on the traditional theory which effectively assumes that grants income is returned to local taxpayers either directly via rebates or indirectly via reduced local taxes. Provided that the results of the empirical studies are accurate, the flypaper effect therefore either disproves the traditional theory of intergovernmental grants, or demonstrates that it is not fully developed enough to explain these seemingly contradictory results. Alternatively, the empirical results are themselves flawed because statistical and/or specification errors lead to an overestimation of the flypaper effect. Although fifty or so publications in journals and textbooks have attempted to find theoretical and/or empirical explanations of the flypaper effect, the search for a comprehensive and definitive explanation still proceeds apace. Many different avenues of research have been followed but the end result is always frustrating in that, at best, only partial explanations have been found and doubt remains about the size, and even existence, of this effect. The earlier theoretical and empirical research has been almost completely restricted within the confines of neoclassical economics, the attempt being to improve the median voter demand model and/or temper it with public-choice perspectives and to develop more robust empirical estimations of that model. Considering the substantial analytical and empirical insights provided by some of the earlier research, it seems that more recent research has provided rapidly diminishing marginal returns to intellectual and empirical effort. Hence, it would be opportune to provide an up-to-date review of all the literature in order to assess the achievements of the various avenues of research and identify the most promising avenues for future research. It is the contention of this article that much of the more recent research has lacked strategic direction, has too readily accepted the validity of the median voter demand model in testing the median voter hypothesis, and has often simply tried yet another variant of earlier econometric tests. Such apparently promising avenues of research have all too often ended prematurely in culs-de-sac. 2. A summary of the traditional theory of grants-in-aid There are three main conclusions arising from traditional grants-in-aid theory. First, general lump-sum and specific lump-sum grants have the same effects on grantee spending because they have only an income effect. Second, openended matching grants have a greater stimulatory effect on grantee spending than equivalent lump-sum grants because they have both income and substitution effects. Third, general lump-sum grants have similar (or the same) stimulatory effects on grantee spending as an equivalent rise in income in the community.
3 337 Traditional indifference curve theory maps the preferences of an individual between two alternatives (Wilde, 1968, 1971; and Bradford and Oates, 1971). Mapping the preferences of the decision-making body of the grantee authority is in principle the procedure likely to give the best predictions of the effects of grants (King, 1984: 89). Both Scott (1952) and Wilde (1968) assume that the decision-making body satisfactorily reflects the preferences of the community. Hence, the positive predictions of this model are similar to the predictions of both the median voter and the community indifference mappings, the latter being used by Oates (1972), Boadway (1979) and King (1984) because of their ability to make both positive and normative predictions. However, whilst Oates (1972) believes that the median voter is essentially the same as the community, Buchanan (1988) believes there is no comparison between the two. Scott (1952: 393) notes that the redistributive effects of a grant may result in the community indifference curves crossing and giving no clear indication of the desirability of contemplated changes. This problem is accepted by users of community curves and is normally dealt with by assuming that there are no redistributional effects. This is a major deficiency because many grants-in-aid programmes are intended to have redistributive effects. The median voter framework is used by Romer and Rosenthal (1980) and by Bradford and Oates (1971). The Bradford and Oates model shows how the traditional equivalence conclusions of the models of Wilde (1971) using the individual framework, can also be derived through a model of simple majority voting with fixed tax shares. While not directly referring to the median voter, the Bradford and Oates model is implicitly a median voter model. They refer to the well-known theorem of Duncan Black [which] informs us that the equilibrium level of provision of the collective good is the median peak, (i.e., the median of the members most preferred budgets) (Bradford and Oates, 1971a: 425), and apply this theorem to their model. The well-known traditional result of the median voter model can be demonstrated in Figure 1. A general lump-sum grant of CD received by the local government shifts the budget line from AC (pre-grant) to BD (postgrant), the equilibrium shifting from e 1 to e 2. An equivalent increase in the disposable income, equal to AB, of the median voter would have exactly the same result as a lump-sum general grant of the same amount (the equivalence theorem) since it would also produce the budget line BD with equilibrium again at e 2. This outcome will be the case as long as the goods are normal goods. This conclusion is reached in all of the traditional theories, irrespective of which indifference mapping is used because the neo-classical assumptions underlying all of the traditional models are the same. However, the empirical
4 338 Figure 1. Possible effects of varying general lump-sum grants and median voter income. evidence (summarized in Table 1) contradicts this theoretical result in finding a significant difference between the stimulatory effects of an unconditional general lump-sum grant and an equivalent increase in individuals incomes. Hence, the traditional model appears invalid. In Table 1, de/dg denotes the rate of change of expenditure relative to the rate of change of intergovernmental grant. Gramlich and Galper s (1973) measure of de/dg was Increases in individual s incomes yield the measure de/di (where I represents income) which lies between 0.05 and Hence de/dg is more than four times greater than de/di the flypaper effect. Whilst there is a wide disparity in the measures of de/dg, varying between 0.25 and 1.00, the empirical results overwhelmingly confirm the flypaper effect. This result is demonstrated in Figure 1. ICP represents the income consumption path, showing the locus of consumption choices arising from the increase in median voter income. However, GCP (the grant consumption path) represents the empirical result where receipt of a lump-sum grant has a greater stimulatory effect on local government spending than an equivalent increase in median voter income, X 3 being greater than X 2. A flypaper effect occurs as long as GCP lies below ICP.
5 339 Table 1. Some empirical studies of the effects of general lump-sum grants Author Year Sample de/dg Gramlich and Galper 1973 Time series data of federal grants to 0.43 local and state governments Gramlich and Galper 1973 Cross-section data of federal and 0.25 state aid to 10 large urban governments Feldstein 1975 State block grants to Massachusetts 0.60 towns Bowman 1974 West Virginia untied aid to independent 0.50 school districts Weicher 1972 State school aid to fiscally independent 0.59 school districts Inman 1971 Panel study of 41 city budgets 1.00 Weicher 1972 Untied aid to 106 municipal governments 0.90 Nathan et al Monitoring of revenue sharing in state or local governments Olmstead, Denzan, and Roberts 1993 Missouri state aid to local school 0.58 districts Case, Hines, and Rosen 1993 Federal grants to 48 states Sources: Gramlich (1977), Hines and Thaler (1995), Becker (1996). Notes 1. Dollery and Worthington (1996) provides a summary of the major studies of the flypaper effect undertaken during the 1980s and 1990s. Although no estimates of de/dg are given, there is overwhelming evidence in support of the flypaper effect. 2. Becker (1996) provides results for logarithmic and linear estimates 3. Questioning the empirical evidence If errors, of whatever form, exist in the empirical studies, then doubt may be cast on the existence or size of the flypaper effect. The wide variance in the level of the flypaper effect (Table 1) suggests that a number of the studies overestimate the size of the flypaper effect. There are three main types or errors Mis-specification of the type of grant King (1984) emphasized the importance of the type of grant to the empirical result, an open-ended matching grant having a greater stimulatory effect than a lump-sum grant of the same amount. This is because, whilst both types of
6 340 grant have an income effect, only the matching grant has a substitution effect. Chernick (1979) observed that a non-matching grant may effectively become an implicit matching grant if the grant administrators award the grants to the recipient who is willing to commit a substantial amount of their own funds to the project. Chernick (1979) found there to be a positive and significant relationship between the cost contribution of the recipient and the size of the grant awarded, ceteris paribus (Fisher, 1982: 338). Chernick s results applied to HUD Basic Water and Sewer Facilities grants in the USA between 1966 and 1972 and have been criticized for their inapplicability to general revenuesharing grants which are truly unconditional (Hines and Thaler, 1995). Nonetheless, the model does highlight a problem for empirical studies. If this process of negotiation occurs for other grant programs, then the flow of causation assumed in many of the models is questionable. The assumed flow from the amount of the grant to its stimulatory effect on the level of expenditure, can occur the opposite way, with the amount of the grant awarded dependent upon the grantee s level of expenditure on the project. This mutual dependency destroys the distinction between the dependent and independent variables and therefore invalidates attempts to model the flypaper effect. Barnett (1993) notes that joint use of lump-sum and matching grants within a programme of grants-in-aid is not uncommon and characterized the system of intergovernmental grants in England and Wales prior to Moffitt (1984) proved that treating such project grants differently in econometric terms could eliminate the flypaper effect. Where the expenditure level of the local government and the matching rate they received (and thus the marginal price) are determined simultaneously, use of simultaneous equations avoids creating an upward bias in the estimates. Moffit s study of the AFDC (aid for dependent children) programme in the USA shows that when the AFDC grants are treated in this way, any flypaper effect disappears. Megdal (1987) also found upward biases using ordinary least-squares (OLS) models. However, after comparing an OLS model with one in which the bias is eliminated through the freeing of the correlation between price, income and the error term, Wyckoff (1991: 316) concluded that there is no doubt that Moffitt and Megdal have pointed out the theoretically correct way to estimate demand functions in the face of closed-ended matching grants, but their correction does not explain the flypaper effect Use of an inappropriate functional form Overestimation of the flypaper effect may also occur because most studies use a linear, rather than logarithmic, functional form because of its ease of use. For example, Becker (1996: 97) finds that linear equation produces
7 341 estimates of the spending responses to grants that are inflated by a factor of nearly six, while the use of a logarithmic form with identical data and explanatory variables provides no evidence of the flypaper effect. In a similar vein she finds that not taking into account the biases created by endogeneity can result in the flypaper effect being inflated by a factor of almost ten. In effect, this is a measure of the impact of the inter-dependency between the amount of grant awarded and the recipient s expenditure promises to grant administrators identified by Chernick (1979) Use of inappropriate variables or omission of appropriate variables A flypaper effect may also be created by exclusion of appropriate variables from (or inclusion of inappropriate variables in) the model. Hamilton (1983) develops an idea of Bradford, Malt, and Oates (1969), expanded upon by Oates (1977, 1981), that the quality of the residents of a jurisdiction is an important input in the provision of local public services (Hamilton, 1983: 347). The suggestion is that a given level of service can be achieved using less resources for some types of populations than for others. For example, according to educational research, children from higher income and higher socioeconomic-status communities require less public expenditure to attain a particular standard than those on lower income, and therefore with lower socioeconomic-status. Similarly, those higher-income communities have a lower level of street crime and require therefore less policing, again reducing the level of public expenditure required. Hamilton (1983) is in effect claiming that other models have omitted relevant variables (i.e., socioeconomic status) and are therefore incomplete. In its use as a proxy for socioeconomic characteristics, Hamilton uses an income as an input hypothesis in the production of education to explain a significant part of the flypaper effect. He finds that, based upon obtaining reasonable parameters for the relevant variables, technology for producing local goods, and price elasticity of output demand, a significant portion (but not all) of the flypaper effect can be explained in this way. However, Wyckoff (1991) contradicts Hamilton (1983). His model included many socioeconomic variables mentioned by Hamilton, and some more besides. While he admits that he may have omitted some variables, he included the crucial variable of the educational level of the community. Using a non-linear model in the form suggested by Moffitt (1984) and Megdal (1987), Wyckoff (1991) compared a model with the extra variables to one without. He discovered that, while the extra socioeconomic variables helped to explain expenditure levels,they do not help to explain the flypaper effect in terms of increases in expenditure subsequent to receiving lump-sum grants. This seems a reasonable conclusion since, whilst socio-economic status is
8 342 positively related to educational achievement, it is by no means clear whether higher or lower status would have a greater stimulatory effect on expenditure. Wyckoff (1991: 320) concludes that... the flypaper effect is unlikely to fade away with the inclusion of these omitted variables. A second potentially relevant variable that has been omitted is the local government s savings ratio. Econometric studies take account of median voter savings by default since they consider median voter expenditures. However, to the extent that they use local government budgets inclusive of financial balances, they overestimate municipal expenditures. This is clearly invalid because balances are used to finance future, not current, expenditures. If account was taken of municipal balances, and if savings ratios were the same for the median voter and his or her local government, the flypaper effect would disappear. Even if it is not the same as the median voter, any positive marginal propensity to save on the part of local government would mean that such econometric studies overestimate the flypaper effect. A third potentially relevant variable that has been omitted is expenditure on private sector alternatives. Local government expenditure figures necessarily exclude voter expenditures on private sector alternatives (e.g., for school education and leisure and recreation). Substantial alternative private sector provision could lead to median voter preferences for lower levels of public sector provision by the local public sector, preferences to which local governments may be reluctant or slow to respond, in the latter case because of delays inherent in adjusting service capacity to rapidly fluctuating (rising or falling) demand. 4. Theoretical explanations of the flypaper effect 4.1. Deadweight loss Hamilton (1986) argues that the deadweight loss of welfare created by local government taxation (e.g., because of disincentive to work effects) creates added costs for locally-raised tax revenues. In comparison, grants received from central government are free from these additional costs and therefore it is not as costly in terms of lost economic potential for the community to spend grant money as it is to spend taxation revenues raised locally. However, this explanation has been rejected since the marginal deadweight losses from taxation are typically far too small to reconcile the large differences between propensities to spend out of changes in grants and changes in private incomes (Hines and Thaler, 1995: 221).
9 Transaction costs Quigley and Smolensky (1992) analyse the impact of transaction costs in terms of the costliness of changes in tax rates. Local government tax rates may be determined only once each year (i.e., when budgets are set) such that a mid-year change in the disposable income of the median voter would require the full scale redetermination of the budget if tax rates were to be altered. This would be very costly in terms of both democratic decision-making and administration. Hence, the impact on local government expenditure of an increase in mid-year income will be small. Similarly, transaction costs will be considerable if additional grants are received during the financial year. Hence, high transaction costs lead to the most economically efficient situation being to increase local government expenditure by the full amount of the grant rather than returning a proportion to the voters in the form of a tax cut. Under certain scenarios of modest adjustment costs, the median voter is absolutely better off by not reoptimizing in response to a block grant but instead spending the entire grant on public production. Reoptimization will not be necessary if grant values are announced in advance of local budgeting such that Quigley and Smolensky s model would become inapplicable A low-income constraint Here, the median voter s utility is maximized subject to the constraint that the tax rate set must not leave the authority s poorest citizens with a net income below some level specified by the median voter (King, 1984: 114). Higher levels of output of local government services require higher local tax rates, assuming intergovernmental grants are fixed. At some point, increasing the tax rates set by the local authority would result in the poorest citizens having disposable incomes below the level specified by the median voter, assuming that all income groups are liable to pay the local tax. It is then possible to demonstrate the flypaper effect in diagrammatic terms (King, 1984: ). However, the assumption that all income groups are liable to pay local taxes is invalid. By definition, the poor do not pay local income tax and their payment of a local sales tax or a local property tax will be reduced by sales tax exemptions (e.g., food and fuel) and by income-related rebates for the local property tax Failure by institutional structure Failure by institutional structure negates the assumption that the political process is highly responsive to the preferences of individuals, either because of the restrictions placed upon the lower level of government by higher authority, or by the rules of the local government itself (Bradford and Oates,
10 ). It can be failure by neglect rather than by design. A flypaper effect could occur under certain conditions Failure by learning or habit Failure by learning or habit occurs when citizens don t know, and can t correctly imagine the consequences of some proposed collective action. If those preferences are confused then government failure occurs (Bradford and Oates, 1971). This could create a flypaper effect Tax capitalization Turnbull and Niho (1986) argue that the flypaper effect is due to tax capitalization arising from the payment of grants-in-aid, the resultant increase in the local property tax base leading to greater local tax receipts (for a given tax rate) and thus higher expenditures. However, it could be expected that, in subsequent years, voters would seek lower tax rates if their demand elasticities remain unchanged. This emphasizes the need for a dynamic model (see below) Disharmony of interests The traditional model s assumption is one of a harmony of interests between voters and politicians/bureaucrats. Wilde (1968) argued that disharmony could occur because politicians and bureaucrats may act in their own interests rather than those of local citizens and Gramlich (1977) explicitly pointed towards disharmony as the primary reason for the flypaper effect. There are three models of disharmony Niskanen s model of bureaucratic behaviour Niskanen (1968) assumes that bureaucrats are only interested in maximizing their own welfare, not that of the community (i.e., voters and politicians) for which they provide services. The bureaucratic welfare function contains many variables, for example, salary, perquisites of the office, public reputation, power, patronage, ease of managing the bureau, and ease of making changes. Niskanen argues that all of these are a positive monotonic function of the budget, thus making budget maximization the goal for bureaucrats seeking to maximize their own utilities. This explains the flypaper effect because an equivalent rise in the incomes of voters would have increased the budget of the bureau by a lesser amount. Schneider and Ji (1987) find that whilst competition does not consistently limit the flypaper effect, nonetheless the negative relationship between the
11 345 degree of competition and the size of the flypaper effect is consistent with Niskanen s model of bureaucratic behaviour as moderated by the Tiebout (1956) model of the local market for municipal outputs. The greater the degree of competition between municipalities attempting to attract residents by means of alternative tax/expenditure packages, the more constrained are bureaucrat s attempts to maximize their own welfares by maximizing their budgets. Hence the Niskanen model is limited in its usefulness to explain the existence of the flypaper effect because it assumes that the bureau has some degree of monopoly power, presenting governing politicians with an all-or-nothing choice The setter model Romer and Rosenthal s (1980) model is in similar vein to the Niskanen model. It assumes use of referendum voting to decide upon the level of expenditure on the single public output proposed by a legally-designated agent which knows the preferences of the voters it represents and which seeks to maximize the budget. If the proposed level of expenditure is defeated in the referendum, the level of public provision is established by an exogenous, legally-designated reversion level. The agent proposes an expenditure level where the median voter is indifferent between the proposed level (such as X 3 in Figure 1) and the reversion level (which is therefore X r ), or is marginally better off under the proposed level (i.e., an expenditure level just below X 3 ), thus ensuring maximization (or nearly so) of expenditure. In contrast to the traditional model, the rise in incomes would have no effect on the expenditure level in the setter model, so long as the rise does not result in the point of tangency between the indifference curve and the new budget line rising beyond the agent s proposed level of expenditure. Therefore, since it is assumed that the lump-sum grant has to be spent in addition to the pre-grant reversion or proposed levels, the flypaper effect occurs. However, the Romer and Rosenthal (1980) model s results are affected by different reversion levels and the type of good (i.e., normal or inferior), such that the effects of a grant can be less than an equivalent increase in income. Moreover, the assumptions of the setter model can be criticized as unrepresentative of the way local government operates, usually without referenda. Romer and Rosenthal developed their model to analyze U.S. school boards and, whilst their model can be generalized (King, 1984), their assumptions cannot. It is not clear why local voters would agree to a suboptimal level of output, e.g., any level of output other than X 2 in Figure 1. They could be forced to acquiesce to a suboptimal level of output if the legally-designated authority (agent, setter) has powers to override local voters preferences.
12 346 Whilst this may not be unreasonable in the case of U.S. school boards it would abrogate the underlying democratic rationale of local government The greedy politicians model McGuire (1975) assumes that politicians spend all the money they can get their hands on, as long as individuals are not made any worse off, in order to maximize their chances of political survival and hence their own welfares. Again, this is similar, in essence, to Niskanen s model. That both politicians and bureaucrats may not act in the best interests of the individuals they represent is a more comprehensive explanation of the flypaper effect Fiscal illusion Fiscal illusion models have been developed by Oates (1979), Courant, Gramlich, and Rubinfeld (1979) and Logan (1986). In Oates model, lump-sum grants also have substitution effects, arising because of fiscal illusion on the part of voters. Local government officials are assumed to be output maximizers and to use the grant to deceive local voters into thinking that the cost of service is less than it actually is. Reference is made to the reduced average tax price. Since, however, the marginal cost to the electorate is unaffected, the level of output is excessive. The stimulatory effects of a lump-sum grant are not equivalent to an increase in individual s incomes, because although they may generate the same true budget constraint, they do not result in the same perceived budget constraint (Oates, 1979: 29). Dollery and Worthington (1995) find some support for the fiscal illusion explanation in Australia, and Heyndels and Smolders (1994) find important illusionary effects in Flemish municipalities. Borge (1995) demonstrates that fiscal illusion unambiguously predicts a flypaper effect. However, Oates (1979) theory and the public-choice theories of Filimon, Romer and Rosenthal (1982) were rejected by Wyckoff (1991) because they were rejected statistically by his study. Moreover, both the Oates (1979) and Courant, Gramlich, and Rubinfeld (1979) models admit that while voters using average instead of marginal prices can create an illusion that may lead to a flypaper effect, this may only explain part of that effect Uncertainty and risk aversion Fossett (1990) and Turnbull (1992) develop models incorporating uncertainty and instability of grant revenue. Fossett s model also incorporates risk-averse behaviour of local officials. He believes that the uncertainty about grantsin-aid, both in terms of the level of aid and the type of aid, results in local
13 347 officials being cautious about any future support from the federal level of U.S. government. There would be both political and financial risks in passing on to local voters a tax reduction made possible through the receipt of a grant this year which may not occur in future years, since local tax levels would fluctuate markedly, leading to voter discontent. Prudent local officials may, therefore, decide it is in the best interest of the community to spend the grant on local government outputs. The resultant empirically-observable flypaper effect is the result of caution on the part of local officials, not of greed on the part of output-maximizing bureaucrats. He believes that this model is more realistic in its political assumptions than the agenda-type models, and the fiscal illusion models. Certainly, there is U.K. evidence that local governments increased their financial balances during periods of grant instability (Audit Commission, 1984) Pressure groups Dougan and Kenyon (1988) develop a model in which interest groups, rather than voters, are the key actors in budget determination. The political power of pressure groups inevitably varies from programme to programme and so the size of the flypaper effect varies according to the expenditure category. This could explain why measures of the flypaper effect vary between 0.25 to 1.00 in Table 1 above. Dougan and Kenyon s model is, however, not tested on actual observation. Additionally, their use of a categorical grant rather than a general grant in their analysis may cause a bias in their model, even though both types of grant may be lump-sum. Pressure groups can be expected to be more easily mobilized in respect of categorical (specific) grants rather than general grants. 5. Summary and lessons from the literature review It is clear that there is, as yet, no single explanation of the flypaper effect that has been verified both theoretically and empirically. While many of the theories reviewed above can explain some part of the flypaper effect, their authors have usually conceded that they are not full explanations. The traditional theory of grants-in-aid would appear to be defective since it cannot predict the flypaper effect, accepting that effect has been confirmed by empirical studies. Modified traditional theories relax some of those assumptions by taking account of transaction costs (incurred when reoptimizing consumption patterns) and of local deadweight losses arising from local taxation (but not from centrally financed growth), or by arbitrarily imposing a minimum
14 348 disposable income constraint upon median voter preferences. Doubt has been cast on the magnitude of the excess burden, and transaction costs have been shown to depend upon the disjuncture (if any) between the chronological schedules for local budgeting and for announcement of grant allocations. The minimum disposable income constraint is at best a special case. These competing theories are clearly based upon different models of local government. The traditional theory of grants-in-aid, whether qualified or not, implicitly adopts the fiscal exchange model of local government, namely that local governments act in accordance with the wishes of the median voter and the constraints of grant-assisted budgets. In fact, despotic, benevolent local governments may provide higher levels of output than voted for because of the public good, merit good and positive externality characteristics of their services. In this case, local government is not simply a vote-counting mechanism but, instead, pursues the public interest extending beyond the self-interest of the median voter. Even if the despotic benevolent model of government is invalid because of principal-agent disharmony, the public choice leviathan models of local government are deficient in failing to demonstrate how self-serving bureaucrats, politicians or the budget-setting agent (setter) acquire sufficient power to be able to override the wishes of voters. However, even though the effect of institutional structure and the behaviour of local officials may not be as strong as the public-choice models suggest, the literature now recognizes that supply-side factors must be considered as well as demand-side factors. Any empirical evidence of excess expenditures may be the result of institutional failure by neglect rather than by design, there being no decision-making mechanism by which to consider lowering taxes subsequent to receiving grant. Such outcomes could still be consistent with the despotic benevolent model. Alternatively, they may be due to fiscal illusion on the part of voters themselves, their voted for preferences for service levels being based on average rather than marginal costs. Of course, budget maximizing bureaucrats may seek to engender such fiscal illusion. However, uncertainty created by any instability of intergovernmental grants from year-to-year may cause bureaucrats and local politicians to soak up grants in terms of services and financial balances rather than risk unpopularity by causing large annual swings in local tax levels to offset similar fluctuations in grants. A high level of gearing between grants and local taxes (i.e., where the latter are small relative to the former) would encourage such caution on the part of bureaucrats and local politicians. Local politicians may also be susceptible to pressure from, or otherwise seek to benefit, particular interest groups who stand to benefit from expansion of specific services much more than they would benefit from a reduction in local tax
15 349 levels, the benefits of which are spread over the community as a whole. This would be consistent with the fiscal transfer model of local government. Local governments are also more attuned to deciding how to spend money rather than how not to spend it (i.e., return it to local taxpayers). 6. The median voter model and the median voter hypothesis The two main areas for further research relate to the median voter model of demand aggregation and the median voter hypothesis that actual expenditure conforms to that predicted by the model The median voter model Developed into a powerful model to analyze political decision-making (Hotelling, 1929; Bowen, 1943; Downs, 1957; Black, 1948 and 1958; Barr and Davis, 1966), the median voter model concludes that the median voter s most preferred tax and service package will be chosen under a majority rule because the median voter is the pivotal voter. The explicit and implicit assumptions of the median voter model are voter sovereignty, single-issue decisions, single-peaked preferences, majority voting, all voters vote, the cost to the local electorate of producing alternative levels of services is known, the full marginal cost of changes in service provision is reflected in the median voter s payment of local government taxes, all voters benefit equally from provision of local government services (which must, therefore, all be pure public goods), a perfectly functioning local democracy exists where local governments have full autonomy regarding local tax levels and service provision (voting mechanism acting as a perfect substitute for prices in connecting demands from consumer-voters with the supply decisions of elected local governments), utility functions are separable between private and public sector expenditures so that preferences expressed through voting reflect only the marginal costs and benefits to be derived from local government services, individual voters vote for their most preferred alternative, the political process is competitive (comparable with competitive market processes) and politicians seek to maximize votes allocated to them, bureaucrats serve politicians instructions who in turn reflect voter preferences, the median voter is the pivotal voter whose preferences are decisive, the median voter s identity is unaltered when grants are received or incomes change and, finally, a menu of distinct alternative policies and programmes is offered to voters. All of these assumptions are clearly open to dispute. Voters may not be sovereign, local governments take multiple decisions, preferences may be
16 350 multi-peaked rather than single-peaked, some local governments have proportional representation, many elections experience less than full voter turnout with the result that the median preference of the totality of those eligible to vote may differ from the median preference of those who do actually vote, imperfect knowledge and fiscal illusion may occur, not all voters pay the full marginal costs of local government services and not all benefit equally from them since not all are pure public goods (services such as school education being private goods, albeit with possibly substantial positive externality and merit good characteristics), democracies rarely function perfectly, private and public sector expenditures are often not mutually exclusive substitutes but may instead by complements, voters do not always declare their preferences honestly in that strategic voting may occur (individual voters voting for a less favoured alternative in order to block adoption of the least favoured alternative where the Arrow (1951) problem of cyclical majorities occurs), non-competitive institutions (bureaucracies) may exercise monopoly power, resulting in spending levels greater than those favoured by the median voter (Niskanen, 1975; Romer and Rosenthal, 1979a), and the identity of the median voter may change as a result of receipt of grant. The limitations of the assumptions of the median voter model have been widely acknowledged (Sorensen, 1995). Nevertheless, Turnbull and Djoundourian (1994) find that the median voter hypothesis explains the aggregate level of general local government expenditures, but does not provide a good explanation of spending on individual services. Therefore, whilst it has considerable explanatory power, the model can be criticized as overly simple and naive in its appreciation of local political processes (effectively ignoring them). The median voter model has only one criterion (income) which creates political alliances. A more sophisticated model (Inman, 1979) takes account not only of median income but also the voter s tax price, the voter s share of intergovernmental aid, the size of the jurisdiction s population and its socioeconomic composition. Poole and Rosenthal (1996) argue that the median voter, issue-by-issue approach to the analysis of public expenditure decisions is inadequate as a model of the political process. It assumes that preferences on specific issues or alternatives are directly linked to votes on those issues, failing to recognize that votes are traded across issues within political parties. Hence, whilst economic interests do have an influence on voting, they work in such complex ways that Poole and Rosenthal (1996) regard purely economic theories of voting as a failed idea. There is some evidence that the median voter model performs better, in terms of modelling local governmental expenditures, under direct democratic processes than under representative institutional arrangements (Pommerehne, 1978; Santerre, 1986). Whilst this corroboration has not been replicated
17 351 elsewhere (Chicoine, Walzer, and Deller 1989), political parties and special interest groups clearly become more influential in decision making under representative democracy (Nelson, 1992). Politicians may seek a balance between adopting a spending programme which is likely to win the election and one which is more in tune with their own (or their party s) preferences (Hansson and Stuart, 1984). Elections give majority parties mandates rather than commit them to specific decisions. Since the flypaper effect demonstrates that the median voter model s explanatory power is limited, further development of the model is required. The most productive approach (see below) would seem to be to relax its most highly restrictive assumptions. The response of neoclassical economists is the standard one that the validity of a model is to be found in who well it explains local fiscal behaviour, rather than in terms of the realism of its assumptions The median voter hypothesis The questioning of the validity of the median voter model has to be distinguished from inappropriate uses of the model. The proponents of the model have attempted to use it to fully explain local government outputs through the median voter hypothesis. The crudest version of the hypothesis assumes that the median voter has the median income of the local community, so that local government expenditures should correlate with median income. In effect, this is a reductionist form of the argument that expenditures are determined by socioeconomic factors (e.g., Davis, Dempster and Wildavsky, 1966). The flypaper effect is regarded as a contradiction of the median voter hypothesis rather than of the model itself. Holcombe (1989) argues that the median voter model is a valid description of how demands are aggregated under majority rule in many situations. Whilst the empirical evidence does not show that local governments produce what the median voter prefers this should not be misinterpreted as a refutation of the model. The questioning of the median voter model is a result of its over-zealous use in attempting to explain the real world. Nonetheless, most of the evidence is consistent with the model, if not with the hypothesis drawn inappropriately from it. The median voter hypothesis is very unlikely to hold in multi-party, multi-issue settings, often characterized by political compromises, coalitions and voting cycles. Sorensen (1995) presents evidence suggesting that politicians preferences for higher or lower expenditure levels are influenced by their occupational background, the political party to which they are affiliated, and the committee on which they sit. There are six crucial assumptions of the median voter hypothesis, all of which can be challenged:
18 that all the assumptions of the median voter model are valid. Thishas already been addressed above. 2. that the median voter is the person with median income, the median housing value and the median residential property tax bill. However, not all voters pay the local property tax. Those who do not can be expected to regard local government expenditure as a free good. In that case, the property owner would demand a lower level of local government expenditure than the non-property owner, making the usual assumptions of diminishing marginal utility and ceteris paribus. In other words, income and tastes are assumed to be identical and the service must have no effect on property values. 3. that an increase in lump-sum grants represents an increase in community income. However, Brennan and Pincus (1996) argue that grants from higher to lower levels of government are matched by a reverse flow of tax payments (they assume the higher level of government does not borrow to finance the grant). Hence, grants are not manna from heaven and do not represent increases in community income. They assume that tax and lump-sum grant payments are exactly matched for each recipient jurisdiction. Their argument applies specifically to a federal system because the grant has to be financed from within the federation by payment of higher federal taxes. It does not necessarily apply to intergovernmental grants in other constitutional types and does not apply to international grants. 4. that a comparative static approach is valid. However, the distinction between effort-related grants and lump-sum grants has already been questioned and that distinction may only apply to the year in question, rather than over a period of years. As public expenditure plans are reformulated each year, central government may feel obliged to increase the total level of grant support in line with the increased spending of local government in general and of individual local authorities in particular. Local authorities may realize that, year-on-year, there is a positive and significant relationship between their spending and grants, arising indirectly through the public expenditure planning process rather than directly through a geared grant/expenditure mechanism. They may, therefore, decide to increase spending in any one year above the level that would be expected based on the median voter s income elasticity of demand in anticipation of consequently higher lump-sum grants in the following year. This form of grantsmanship illustrates the deficiency of the comparative static approach of the flypaper effect. A comparative dynamic approach would seem more valid.
19 that lump-sum grants are exogenous such that there is a clear and absolute division between national and local government decision-making. Central government decisions about the level of grants to be paid to local governments must be made independently of local government, the latter having no influence on the former. This seems unlikely, however, not just because of the behaviour of grant administrators and local grantsmanship (both referred to above), but also because local voters also participate in national elections. There may, in fact, be a connection between local and national voting outcomes. 6. that the preferences of the median voter can be matched with those of a candidate for political office. This is much less likely to occur under representative democracy because elected politicians may have their own utility functions in which voter preferences are not the predominant components, the others being the national party line, the politician s own ideology and the need to cater for specific constituencies as well as the overall electorate (Poole and Rosenthal, 1984; Levitt, 1996). 7. that proportionality exists between the distribution of voters across jurisdictions in order that cross-sectional data (i.e., estimates of demand functions for local government services) can be used to test the median voter hypothesis. This assumption means that the output demanded by the voter with median income equals the median output demanded in each jurisdiction (Bergstrom and Goodman, 1973). This may not be the case in practice but, in assuming that it is, the median and mean will correlate with each other such that it will not be possible to distinguish between them for the purposes of the empirical research. The median and mean income will differ if jurisdictions income distributions differ from each other in terms of their degree of skewness. There is some evidence that the median performs better than the mean under direct democracy but its greater explanatory power (than the mean ) is reduced under representative democracy (Pommerehne, 1978). Micro-level surveys of voters preferences for local government services are an alternative to cross-sectional studies but are rarely used (Gramlich and Rubinfield, 1989). 8. that the tax reduction or, alternatively, the services that could be financed by the unconditional grant are of equal value to the median voter. However, the income in cash and in kind will only be of equal value if the median voter s tax share is the same as his or her share of service provision. The greater the median voter s local tax share, the greater that voter s tax reduction which can be financed by the unconditional grant. Eligibility criteria for service takeup will not automatically equate the value of service consumption with tax payment. Early versions of the
20 354 median voter model took no account of the distribution of tax share. This deficiency was later remedied, for example by Borcherding and Deacon (1972). Nonetheless, the median voter model continues to assume that the benefits of service provision are equally shared amongst the local electorate. The model is therefore deficient in this respect. Hence, the equivalence theorem does not hold and so the income-consumption path and the grant consumption paths depicted in Figure 1 will not be the same. 9. that the median voter s budget constraint is represented by the median income within the local community. This is only valid if voters consider only purely individual issues when casting their votes. If they take account of family or household interests, then median family income or median household income, respectively, should be used rather than median individual income (Turnbull and Mitias, 1995). Hence, the term median income is ambiguous. All three definitions of median income have been used in the empirical research, although it is not always clear precisely which measure has been used. In practice, the measure of median income is often determined by data availability. However, expenditure data alone cannot confirm that the median income earner is the pivotal voter. There is some evidence that median income outperforms other income measures (Mathis and Zech, 1986), although this may only apply to U.S. school boards education expenditures (i.e., which are unidimensional). However, after reviewing a number of studies, Romer and Rosenthal (1979b) concluded that there was no strong support for the median voter hypothesis. They have three main criticisms of empirical studies. First, they do not confirm that the median voter is the pivotal voter. Second, they fail to identify whether actual expenditures correspond to the level desired by the median voter or are some multiple (e.g., twice or one-third) of that level. Third, the median voter model is rarely tested against competing models and so it is not possible to demonstrate the superiority of the median voter model over other models. There are two alternative approaches. The first approach is to use alternative statistical models, of which there are two possibilities. The first is to correlate spending with the mean income or some other fractile, instead of the median income. Adoption of a particular fractile is invalid, however, if local governments are likely to differ in terms of that part of the income distribution the decisive voter s income is to be found (Aronsson and Wikstrom, 1996). A second possibility is to develop a more general model in which income is only one variable. The traditional approach sought to explain local government spending with reference to
Substitution and income effects at the aggregate level: The effective budget constraint of the government and the flypaper effect
Substitution and income effects at the aggregate level: The effective budget constraint of the government and the flypaper effect Cristian F. Sepulveda * Tulane University November, 2013 Abstract ThisMore information
The Elasticity of Taxable Income: A Non-Technical Summary
The Elasticity of Taxable Income: A Non-Technical Summary John Creedy The University of Melbourne Abstract This paper provides a non-technical summary of the concept of the elasticity of taxable income,More information
A Review of the Literature of Real Business Cycle theory. By Student E XXXXXXX
A Review of the Literature of Real Business Cycle theory By Student E XXXXXXX Abstract: The following paper reviews five articles concerning Real Business Cycle theory. First, the review compares the variousMore information
. In this case the leakage effect of tax increases is mitigated because some of the reduction in disposable income would have otherwise been saved.
Chapter 4 Review Questions. Explain how an increase in government spending and an equal increase in lump sum taxes can generate an increase in equilibrium output. Under what conditions will a balancedMore information
TAX REDUCTION AND ECONOMIC WELFARE by Richard K. Vedder and Lowell E. Gallaway Distinguished Professors of Economics, Ohio University Prepared for the Joint Economic Committee Vice Chairman Jim SaxtonMore information
On the irrelevance of government debt when taxes are distortionary
On the irrelevance of government debt when taxes are distortionary Marco Bassetto a,b,, Narayana Kocherlakota c,b a Department of Economics, University of Minnesota, 271 19th Ave. S., Minneapolis, MN 55455,More information
A Note on the Optimal Supply of Public Goods and the Distortionary Cost of Taxation
A Note on the Optimal Supply of Public Goods and the Distortionary Cost of Taxation Louis Kaplow * Abstract In a recent article, I demonstrated that, under standard simplifying assumptions, it is possibleMore information
Taxes and Income: Where Does Kentucky Stand?
Taxes and Income: Where Does Stand? William H. Hoyt Much recent debate has focused on the substantial tax burden on lower-income households in relative to other states and relative to higher-income householdsMore information
1 CHAPTER 11. AN OVEVIEW OF THE BANK OF ENGLAND QUARTERLY MODEL OF THE (BEQM) This model is the main tool in the suite of models employed by the staff and the Monetary Policy Committee (MPC) in the constructionMore information
Inflation. Chapter 8. 8.1 Money Supply and Demand
Chapter 8 Inflation This chapter examines the causes and consequences of inflation. Sections 8.1 and 8.2 relate inflation to money supply and demand. Although the presentation differs somewhat from thatMore information
Notes on indifference curve analysis of the choice between leisure and labor, and the deadweight loss of taxation. Jon Bakija
Notes on indifference curve analysis of the choice between leisure and labor, and the deadweight loss of taxation Jon Bakija This example shows how to use a budget constraint and indifference curve diagramMore information
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Factors in Business Investment Volume Author/Editor: Robert Eisner Volume Publisher: NBERMore information
Fiscal Stimulus Improves Solvency in a Depressed Economy
Fiscal Stimulus Improves Solvency in a Depressed Economy Dennis Leech Economics Department and Centre for Competitive Advantage in the Global Economy University of Warwick email@example.com PublishedMore information
Five Myths of Active Portfolio Management. P roponents of efficient markets argue that it is impossible
Five Myths of Active Portfolio Management Most active managers are skilled. Jonathan B. Berk 1 This research was supported by a grant from the National Science Foundation. 1 Jonathan B. Berk Haas SchoolMore information
MACROECONOMIC ANALYSIS OF VARIOUS PROPOSALS TO PROVIDE $500 BILLION IN TAX RELIEF Prepared by the Staff of the JOINT COMMITTEE ON TAXATION March 1, 2005 JCX-4-05 CONTENTS INTRODUCTION... 1 EXECUTIVE SUMMARY...More information
Economic Development Research Group April 1997 MEASURING ECONOMIC IMPACTS OF PROJECTS AND PROGRAMS GLEN WEISBROD, ECONOMIC DEVELOPMENT RESEARCH GROUP BURTON WEISBROD, ECONOMICS DEPT., NORTHWESTERN UNIV.More information
PROJECTION OF THE FISCAL BALANCE AND PUBLIC DEBT (2012 2027) - SUMMARY PUBLIC FINANCE REVIEW February 2013 SUMMARY Key messages The purpose of our analysis is to highlight the risks that fiscal policyMore information
Policy Forum. Why is the Property Tax so Unpopular? By Nathan Anderson and Daniel McMillen. About the Authors
Policy Forum Why is the Property Tax so Unpopular? By Nathan Anderson and Daniel McMillen Volume 22, Number 3 April 2010 About the Authors For local governments the property tax has long been a reliableMore information
I.e., the return per dollar from investing in the shares from time 0 to time 1,
XVII. SECURITY PRICING AND SECURITY ANALYSIS IN AN EFFICIENT MARKET Consider the following somewhat simplified description of a typical analyst-investor's actions in making an investment decision. First,More information
Commentary: What Do Budget Deficits Do?
Commentary: What Do Budget Deficits Do? Allan H. Meltzer The title of Ball and Mankiw s paper asks: What Do Budget Deficits Do? One answer to that question is a restatement on the pure theory of debt-financedMore information
Economic Growth and Government Size. Mark Pingle Professor of Economics University of Nevada, Reno. and
Economic Growth and Government Size By Mark Pingle Professor of Economics University of Nevada, Reno and Mina Mahmoudi PhD Candidate University of Nevada, Reno Short Summary There is good reason to expectMore information
Proposition 2½ Ballot Questions Requirements and Procedures
Massachusetts Department of Revenue Division of Local Services Navjeet K. Bal, Commissioner Robert G. Nunes, Deputy Commissioner & Director of Municipal Affairs Proposition 2½ Ballot Questions RequirementsMore information
Proponents of efficient markets argue that it is
Five Myths of Active Portfolio Management Most active managers are skilled. Jonathan B. Berk Proponents of efficient markets argue that it is impossible to beat the market consistently. In support of theirMore information
Lecture notes for Choice Under Uncertainty
Lecture notes for Choice Under Uncertainty 1. Introduction In this lecture we examine the theory of decision-making under uncertainty and its application to the demand for insurance. The undergraduateMore information
Response to Critiques of Mortgage Discrimination and FHA Loan Performance
A Response to Comments Response to Critiques of Mortgage Discrimination and FHA Loan Performance James A. Berkovec Glenn B. Canner Stuart A. Gabriel Timothy H. Hannan Abstract This response discusses theMore information
Week 7 - Game Theory and Industrial Organisation
Week 7 - Game Theory and Industrial Organisation The Cournot and Bertrand models are the two basic templates for models of oligopoly; industry structures with a small number of firms. There are a numberMore information
Property Tax Relief: The $7 Billion Reality
August 2008 Property Tax Relief: The $7 Billion Reality In the spring of 2006, Texas lawmakers passed a massive package of school finance reforms. School tax rates for maintenance and operations were toMore information
0 100 200 300 Real income (Y)
Lecture 11-1 6.1 The open economy, the multiplier, and the IS curve Assume that the economy is either closed (no foreign trade) or open. Assume that the exchange rates are either fixed or flexible. AssumeMore information
Chapter 21: The Discounted Utility Model
Chapter 21: The Discounted Utility Model 21.1: Introduction This is an important chapter in that it introduces, and explores the implications of, an empirically relevant utility function representing intertemporalMore information
Pricing in a Competitive Market with a Common Network Resource
Pricing in a Competitive Market with a Common Network Resource Daniel McFadden Department of Economics, University of California, Berkeley April 8, 2002 I. This note is concerned with the economics ofMore information
The Treatment of Tax Credits in the National Accounts
The Treatment of Tax Credits in the National Accounts Summary The recording of tax credits in the system of national accounts is an issue of increasing importance. There is no guidance in the existingMore information
Money and Public Finance
Money and Public Finance By Mr. Letlet August 1 In this anxious market environment, people lose their rationality with some even spreading false information to create trading opportunities. The tales aboutMore information
Demand for Health Insurance
Demand for Health Insurance Demand for Health Insurance is principally derived from the uncertainty or randomness with which illnesses befall individuals. Consequently, the derived demand for health insuranceMore information
Integrated Resource Plan
Integrated Resource Plan March 19, 2004 PREPARED FOR KAUA I ISLAND UTILITY COOPERATIVE LCG Consulting 4962 El Camino Real, Suite 112 Los Altos, CA 94022 650-962-9670 1 IRP 1 ELECTRIC LOAD FORECASTING 1.1More information
A Short review of steel demand forecasting methods
A Short review of steel demand forecasting methods Fujio John M. Tanaka This paper undertakes the present and past review of steel demand forecasting to study what methods should be used in any futureMore information
CHAPTER 3 THE LOANABLE FUNDS MODEL The next model in our series is called the Loanable Funds Model. This is a model of interest rate determination. It allows us to explore the causes of rising and fallingMore information
2009, NUMBER 12 2 ND EDITION PERFORMANCE MONITORING & EVALUATION TIPS DATA QUALITY STANDARDS ABOUT TIPS These TIPS provide practical advice and suggestions to USAID managers on issues related to performanceMore information
COMBINED REPORTING WITH THE CORPORATE INCOME TAX Issues for State Legislatures William F. Fox and LeAnn Luna * November, 2010 Report commissioned by the NCSL Task Force on State & Local Taxation of CommunicationsMore information
THE MAGNITUDE AND CAUSES OF ARIZONA S LOW PER CAPITA INCOME February 2010 Dennis Hoffman, Ph.D. Professor, Department of Economics; Director, L. William Seidman Research Institute; and Director, OfficeMore information
http://www.jstor.org This content downloaded on Tue, 19 Feb 2013 17:28:43 PM All use subject to JSTOR Terms and Conditions
A Significance Test for Time Series Analysis Author(s): W. Allen Wallis and Geoffrey H. Moore Reviewed work(s): Source: Journal of the American Statistical Association, Vol. 36, No. 215 (Sep., 1941), pp.More information
for Analysing Listed Private Equity Companies
8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.More information
The Multiplier Effect of Fiscal Policy
We analyze the multiplier effect of fiscal policy changes in government expenditure and taxation. The key result is that an increase in the government budget deficit causes a proportional increase in consumption.More information
Introduction to Economics, ECON 100:11 & 13 Multiplier Model
Introduction to Economics, ECON 1:11 & 13 We will now rationalize the shape of the aggregate demand curve, based on the identity we have used previously, AE=C+I+G+(X-IM). We will in the process developMore information
Structural Econometric Modeling in Industrial Organization Handout 1
Structural Econometric Modeling in Industrial Organization Handout 1 Professor Matthijs Wildenbeest 16 May 2011 1 Reading Peter C. Reiss and Frank A. Wolak A. Structural Econometric Modeling: RationalesMore information
Business & Administration
Business & Administration Student Handbook Level 3 By Anthony Lapsley C o n t e n t s Unit TITLE Page Business resources 1 Agree a budget 1 2 Order products and services 19 Business support services 3More information
Income and the demand for complementary health insurance in France. Bidénam Kambia-Chopin, Michel Grignon (McMaster University, Hamilton, Ontario)
Income and the demand for complementary health insurance in France Bidénam Kambia-Chopin, Michel Grignon (McMaster University, Hamilton, Ontario) Presentation Workshop IRDES, June 24-25 2010 The 2010 IRDESMore information
FISCAL EFFECTS OF POLITICAL DECENTRALIZATION Primož Pevcin University of Ljubljana Faculty of Administration Gosarjeva ulica 5 1000 Ljubljana Slovenia e-mail: email@example.com telephone: +38615805584More information
Chapter 12. Unemployment and Inflation. 2008 Pearson Addison-Wesley. All rights reserved
Chapter 12 Unemployment and Inflation Chapter Outline Unemployment and Inflation: Is There a Trade-Off? The Problem of Unemployment The Problem of Inflation 12-2 Unemployment and Inflation: Is There aMore information
International Accounting Standard 37 Provisions, Contingent Liabilities and Contingent Assets
International Accounting Standard 37 Provisions, Contingent Liabilities and Contingent Assets Objective The objective of this Standard is to ensure that appropriate recognition criteria and measurementMore information
Intermediate Macroeconomics: The Real Business Cycle Model
Intermediate Macroeconomics: The Real Business Cycle Model Eric Sims University of Notre Dame Fall 2012 1 Introduction Having developed an operational model of the economy, we want to ask ourselves theMore information
FISCAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2015
FISCAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2015 The OECD argues in favour of complementary private pension savings to boost overall saving for retirement. Financial incentives may beMore information
INFORMATION FOR OBSERVERS. IASB Meeting: Insurance Working Group, April 2008 Paper: Non-life insurance contracts (Agenda paper 6)
30 Cannon Street, London EC4M 6XH, England International Phone: +44 (0)20 7246 6410, Fax: +44 (0)20 7246 6411 Accounting Standards Email: firstname.lastname@example.com Website: http://www.iasb.org Board This documentMore information
6. Budget Deficits and Fiscal Policy
Prof. Dr. Thomas Steger Advanced Macroeconomics II Lecture SS 2012 6. Budget Deficits and Fiscal Policy Introduction Ricardian equivalence Distorting taxes Debt crises Introduction (1) Ricardian equivalenceMore information
OECD PROJECT ON FINANCIAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2016
OECD PROJECT ON FINANCIAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2016 The OECD argues in favour of complementary private pension savings to boost overall saving for retirement. FinancialMore information
Statement of Estimated General Fund Balance
Commitments and Assignments in the Proposed Fiscal Year 2014 Budget The fiscal year 2014 Operating Budget contains the following commitments and assignments of fund balances estimated to be available asMore information
Governance as Stewardship: Decentralization and Sustainable Human Development
Governance as Stewardship: Decentralization and Sustainable Human Development by Jerry VanSant Research Triangle Institute USA EXECUTIVE SUMMARY Introduction The United Nations Development Programme (UNDP)More information
Submission to the Department of Finance on The Taxation of Corporate Groups
Submission to the Department of Finance on The Taxation of Corporate Groups Prepared by the Canadian Bankers Association April 11, 2011 EXPERTISE CANADA BANKS ON LA RÉFÉRENCE BANCAIRE AU CANADA IntroductionMore information
An Evaluation of the Possible
An Evaluation of the Possible Macroeconomic Impact of the Income Tax Reduction in Malta Article published in the Quarterly Review 2015:2, pp. 41-47 BOX 4: AN EVALUATION OF THE POSSIBLE MACROECONOMIC IMPACTMore information
Revenue Forecasting in Local Government. Hitting the Bulls Eye. Slide 1. Slide 2. Slide 3. Slide 4. School of Government 1
Slide 1 Revenue Forecasting in Local Government: Hitting the Bulls Eye Key objectives for this session. 1. Understand the importance and difficulties of revenue estimation 2. Learn six best practices forMore information
WASSCE / WAEC ECONOMICS SYLLABUS WWW.LARNEDU.COM Visit www.larnedu.com for WASSCE / WAEC syllabus on different subjects and more great stuff to help you ace the WASSCE in flying colours. PREAMBLE ThisMore information
Project Evaluation Guidelines
Project Evaluation Guidelines Queensland Treasury February 1997 For further information, please contact: Budget Division Queensland Treasury Executive Building 100 George Street Brisbane Qld 4000 or telephoneMore information
Discussion of Capital Injection, Monetary Policy, and Financial Accelerators
Discussion of Capital Injection, Monetary Policy, and Financial Accelerators Karl Walentin Sveriges Riksbank 1. Background This paper is part of the large literature that takes as its starting point theMore information
UK Government s Public Finance Plans and Fiscal Targets
UK Government s Public Finance Plans and Fiscal Targets Scottish Government June 2015 Overview This paper analyses the scope to make different choices about the UK s public finances, within the fiscalMore information
Principles of Economics
Principles of Economics (8 th Edition) Dr. H. S. Agarwal Professor of Economics (Retd.) Agra College, AGRA professional publishing Contents JSASIC CONCEPTS^ 1. The Scope and Nature of Economics 1-31 Introduction;More information
Economic impacts of expanding the National Insurance Contributions holiday scheme Federation of Small Businesses policy paper
Economic impacts of expanding the National Insurance Contributions holiday scheme Federation of Small Businesses policy paper Overview This research paper sets out estimates for the economic and employmentMore information
A LEVEL ECONOMICS. ECON1/Unit 1 Markets and Market Failure Mark scheme. 2140 June 2014. Version 0.1 Final
A LEVEL ECONOMICS ECON1/Unit 1 Markets and Market Failure Mark scheme 2140 June 2014 Version 0.1 Final Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevantMore information
Smith on Natural Wages and Profits (Chapters VIII and IX of The Wealth of Nations 1 ) Allin Cottrell
1 The background Smith on Natural Wages and Profits (Chapters VIII and IX of The Wealth of Nations 1 ) Allin Cottrell When Smith begins work on the specifics of natural wages and profits, he has alreadyMore information
THE INSTITUTE OF ACTUARIES OF AUSTRALIA A.C.N. 000 423 656 GUIDANCE NOTE 253 - DETERMINATION OF LIFE INSURANCE POLICY LIABILITIES APPLICATION Appointed Actuaries of Life Insurance Companies. LEGISLATIONMore information
INTERNATIONAL ECONOMICS, FINANCE AND TRADE Vol. II - Sustainable Development, Environmental Regulation, and International Trade - Pushkar Maitra
SUSTAINABLE DEVELOPMENT, ENVIRONMENTAL REGULATION, AND INTERNATIONAL TRADE Pushkar Maitra Department of Economics, Monash University, Clayton, Victoria, Australia Keywords: Environment and development,More information
Marketing Mix Modelling and Big Data P. M Cain
1) Introduction Marketing Mix Modelling and Big Data P. M Cain Big data is generally defined in terms of the volume and variety of structured and unstructured information. Whereas structured data is storedMore information
85 Quantifying the Impact of Oil Prices on Inflation
85 Quantifying the Impact of Oil Prices on Inflation By Colin Bermingham* Abstract The substantial increase in the volatility of oil prices over the past six or seven years has provoked considerable commentMore information
Faculty Productivity and Costs at The University of Texas at Austin
Faculty Productivity and Costs at The University of Texas at Austin A Preliminary Analysis Richard Vedder Christopher Matgouranis Jonathan Robe Center for College Affordability and Productivity A PolicyMore information
GCE Economics Candidate Exemplar Work ECON4: The National and International Economy
hij Teacher Resource Bank GCE Economics Candidate Exemplar Work ECON4: The National and International Economy The Assessment and Qualifications Alliance (AQA) is a company limited by guarantee registeredMore information
Remarks by Dr. N. Gregory Mankiw Chairman Council of Economic Advisers at the National Bureau of Economic Research Tax Policy and the Economy Meeting
Remarks by Dr. N. Gregory Mankiw Chairman Council of Economic Advisers at the National Bureau of Economic Research Tax Policy and the Economy Meeting National Press Club November 4, 2003 My remarks todayMore information
= C + I + G + NX ECON 302. Lecture 4: Aggregate Expenditures/Keynesian Model: Equilibrium in the Goods Market/Loanable Funds Market
Intermediate Macroeconomics Lecture 4: Introduction to the Goods Market Review of the Aggregate Expenditures model and the Keynesian Cross ECON 302 Professor Yamin Ahmad Components of Aggregate DemandMore information
WISCONSIN LOCAL GOVERNMENT, STATE SHARED REVENUES AND THE ILLUSIVE FLYPAPER EFFECT Steven Deller, Craig Maher and Victor Lledo*
J. OF PUBLIC BUDGETING, ACCOUNTING & FINANCIAL MANAGEMENT, 19 (2), 200-220 SUMMER 2007 WISCONSIN LOCAL GOVERNMENT, STATE SHARED REVENUES AND THE ILLUSIVE FLYPAPER EFFECT Steven Deller, Craig Maher andMore information
FISCAL POLICY* Chapter. Key Concepts
Chapter 11 FISCAL POLICY* Key Concepts The Federal Budget The federal budget is an annual statement of the government s expenditures and tax revenues. Using the federal budget to achieve macroeconomicMore information
dr Bartłomiej Rokicki Chair of Macroeconomics and International Trade Theory Faculty of Economic Sciences, University of Warsaw
Chair of Macroeconomics and International Trade Theory Faculty of Economic Sciences, University of Warsaw The small open economy The small open economy is an economy that is small enough compared to theMore information
Discussion Paper No. 730 THE KEYNESIAN MULTIPLIER EFFECT RECONSIDERED Yoshiyasu Ono January 2009 The Institute of Social and Economic Research Osaka University 6-1 Mihogaoka, Ibaraki, Osaka 567-0047, JapanMore information
Why do merchants accept payment cards?
Why do merchants accept payment cards? Julian Wright National University of Singapore Abstract This note explains why merchants accept expensive payment cards when merchants are Cournot competitors. TheMore information
Solutions and Activities to CHAPTER 1 WHY STUDY PUBLIC FINANCE? Questions and Problems 1. Many states have language in their constitutions that requires the state to provide for an adequate level of educationMore information
FY2003. By Jay F. May. Introduction
UT D MA F AR F MD F HI FY2003 FY2007 FY2011 FY2003 FY2007 FY2011 F AZ D D D B C D DE Gra CA FY2003 FY2007 FY2011 FY2003 FY2007 FY2011 F F C F NM Minnesota B C B FL Gr CO CT ID IL FY2003 FY2007 FY2011 FY2003More information
An explanation of social assistance, pension schemes, insurance schemes and similar concepts
From: OECD Framework for Statistics on the Distribution of Household Income, Consumption and Wealth Access the complete publication at: http://dx.doi.org/10.1787/9789264194830-en An explanation of socialMore information
Unraveling versus Unraveling: A Memo on Competitive Equilibriums and Trade in Insurance Markets
Unraveling versus Unraveling: A Memo on Competitive Equilibriums and Trade in Insurance Markets Nathaniel Hendren January, 2014 Abstract Both Akerlof (1970) and Rothschild and Stiglitz (1976) show thatMore information
Explaining Keynes Theory of Consumption, and Assessing its Strengths and Weaknesses.
Explaining Keynes Theory of Consumption, and Assessing its Strengths and Weaknesses. The concept of consumption is one that varies between the academic community, governments, and between individuals.More information
The Elasticity of Taxable Income and the Implications of Tax Evasion for Deadweight Loss
The Elasticity of Taxable Income and the Implications of Tax Evasion for Deadweight Loss Jon Bakija, Williams College This draft: February 2014 Original draft: April 2011 I. The Elasticity of Taxable IncomeMore information
Review of Varshney/Tootelian Report Cost Of AB 32 On California Small Businesses Summary Report Of Findings
Review of Varshney/Tootelian Report Cost Of AB 32 On California Small Businesses Summary Report Of Findings James L Sweeney 1 Draft 2 : February 16, 2010 In June 2009. Sanjay B. Varshney and Dennis H.More information
DRAFT May 2012. Objective and key requirements of this Prudential Standard
Prudential Standard LPS 340 Valuation of Policy Liabilities Objective and key requirements of this Prudential Standard The ultimate responsibility for the value of a life company s policy liabilities restsMore information
The Life-Cycle Motive and Money Demand: Further Evidence. Abstract
The Life-Cycle Motive and Money Demand: Further Evidence Jan Tin Commerce Department Abstract This study takes a closer look at the relationship between money demand and the life-cycle motive using panelMore information
The term marginal cost refers to the additional costs incurred in providing a unit of
Chapter 4 Solutions Question 4.1 A) Explain the following The term marginal cost refers to the additional costs incurred in providing a unit of product or service. The term contribution refers to the amountMore information
Masters in Financial Economics (MFE)
Masters in Financial Economics (MFE) Admission Requirements Candidates must submit the following to the Office of Admissions and Registration: 1. Official Transcripts of previous academic record 2. TwoMore information
1. Circular flow of income
1. Circular flow of income The circular flow of income Firms and households interact and exchange resources in an economy. Households supply firms with the factors of production, such as labour and capital,More information
The Macroeconomic Effects of Tax Changes: The Romer-Romer Method on the Austrian case
The Macroeconomic Effects of Tax Changes: The Romer-Romer Method on the Austrian case By Atila Kilic (2012) Abstract In 2010, C. Romer and D. Romer developed a cutting-edge method to measure tax multipliersMore information
Why Did House Prices Drop So Quickly?
Why Did House Prices Drop So Quickly? David Barker April 26, 2009 Summary: After a long period of stability which ended in the early 1990s, U.S. house prices rose for more than a decade, then suddenlyMore information
Equilibrium: Illustrations
Draft chapter from An introduction to game theory by Martin J. Osborne. Version: 2002/7/23. firstname.lastname@example.com http://www.economics.utoronto.ca/osborne Copyright 1995 2002 by Martin J. Osborne.More information
Further Discussion of Temporary Payroll Tax Cut During Recession(s) Mark Bils and Pete Klenow, December 12, 2008
Further Discussion of Temporary Payroll Tax Cut During Recession(s) Mark Bils and Pete Klenow, December 12, 2008 We focus on three aspects of a cut in payroll taxes as a stabilizer in a recession: (1)More information
Firms capital structure decisions and product market competition: a theoretical approach
Firms capital structure decisions and product market competition: a theoretical approach ABSTRACT Cheulho Lee Florida Memorial University This paper presents a theoretical model, in which a firm's marketMore information
INTERNATIONAL STANDARD ON AUDITING (UK AND IRELAND) 240 Introduction THE AUDITOR S RESPONSIBILITIES RELATING TO FRAUD IN AN AUDIT OF FINANCIAL STATEMENTS (Effective for audits of financial statements forMore information
Retirement Planning Software and Post-Retirement Risks: Highlights Report
Retirement Planning Software and Post-Retirement Risks: Highlights Report DECEMBER 2009 SPONSORED BY PREPARED BY John A. Turner Pension Policy Center Hazel A. Witte, JD This report provides a summary ofMore information
CHOICES The magazine of food, farm and resource issues
CHOICES The magazine of food, farm and resource issues Second Quarter 2003 A publication of the American Agricultural Economics Association Policy Uses of Economic Multiplier and Impact Analysis By DavidMore information


text:
Pentahotel Liege
No prices found through our partners. Please contact the business directly or check some of our recommended alternatives.
- Meeting rooms/conference facilities
- Suites
- Drycleaning onsite
- High-speed internet in room
- Wireless internet connection in room (free)
- Non-smoking rooms
Photos of Pentahotel Liege
Travelers also looked at:
- Restaurant
- Bar/lounge
- Fitness/Health center
- Wireless internet connection in room (free)
- Non-smoking rooms
- Wireless internet connection in public areas
- Breakfast Available
- Non-smoking hotel
- Refrigerator in room
- High-speed internet in room
- Wheelchair accessibility
- Air-Conditioning
- Pets allowed
- Suites
- Drycleaning onsite
- Meeting rooms/conference facilities
- Multilingual staff
- Banquet room
- Conference facilities
- Room service
- Business Services
- Meal plan
- Laundry
TripAdvisor Reviews Pentahotel Liege Ličge
Travel Blogs from Ličge
Zoo & a bit of history
Matt and I headed off to the Koelner Zoo on the metro. It was lovely: very green, glass exclosures. There was a big family of elephants (about 16), 3 hippos who were having fun in the water and making loud noises and showing off their large teeth. Matt loved the orangatangs (the babies were playing) and the cheetahs (who were prowling up and down). A flock of flaming pink flamingo's and long legged ducks.
Tony and H went to the National Socialist ...
Lindt outlet in Aachen & Maastricht fort and caves
... extensive and used to extend into Belgium and all together was over 200km in length. During WWII 15 people were able to escape Germany using the caves. Back to Gemund now to repack our bags as the weight limits on SAS are quite restrictive and we are going to have to make use of all 4x23kg checked baggage and all 4x8kg cabin baggage that we have between us. Hopefully Gav's ALDI baggage scales will weigh ...
Day 42 - Spa to Zonhoven
... crowds in a small village (Gomze maybe), and more in Hasselt (soccer?). We, however, were looking for a bakery and/or a friterie. How can you transit Belgium without beer, frites, and mayo? Close to giving up, Sandra spotted an open brasserie just 3 miles from our proposed campsite. It wasn't cheap, but it did have trappist beer, "the best" mussels in Belgium, frites and mayo. So we scored to the tune of €57. As luck would have it, the local airfield just ...
Day 41 - Hammer to Spa
... keeping warm and tossing coins into the washing machine and dryer. Should now last us for the duration. We've got free Wifi (a bit flaky) to keep us company tonight, so this missive may well get dispatched promptly. Spa will be remembered for the noise - fire engines, ambulances, and police cars all racing about. We never did find out what was going on. Mileage: ...
Time to leave, time to arrive
As I sit on the train heading to Eindhoven to be picked up for my next family visit I am again surprised that I am here and also that the time flows so quickly. All the more reason to be present to it all. I am reminded again of how fortunate I am. To have such good family and be able to travel to visit with them. Saying goodbye has sadness attached to the happiness of being here. Staying connected to ...


text:
Getting your first role as a Disc Jockey, accessing a DJ competition, performing as a Dic Jockey at some local club may be among your ambitions why you are interested in enrolling in a DJ school. Training schools for DJ's are quite varied in the programs taught. Many DJ schools teach skills such as mixing music, scratchy-scratching!, mixing beat styles and juggling among others. Disc Jockey schools as you would imagine are pretty popular with younger people and DJs who want to develop their ability. There is much to learn from these training schools although it can also mean additional budget that you need to set aside for this training program. The most enjoyable part is that the training only takes three months,then you are qualified & ready for action!.
Pelini Not Available To Talk About Resignation
DELRAY BEACH – CBS 12 spent hours camped out of the home of now former FAU head football coach Carl Pelini. We wanted you to hear from him about his resignation. He never made himself available. School officials say he was using drugs and after being confronted resigned.
REPORT: FAU Football Coach Carl Pelini Is Resigning
Posted by Scott T. Smith / CBS12 News BOCA RATON, Fla. — ESPN is reporting that Carl Pelini has resigned as football coach at Florida Atlantic University. FAU has scheduled a news conference for 4 p.m. The school would not confirm Pelini's resignation.
Mystery Surrounds Disappearance Of Bak Middle School Nurse
Story by Karl Man / CBS12 News Posted by Scott T. Smith / CBS12 News PALM BEACH GARDENS, Fla. — The disappearance fo a local school nurse is now being called suspicious by the Palm Beach Sheriff's Office. A $1,000 reward is being offered for Kimberly Lindsey's safe return.


text:
Have you worked with penalized sites? If so, how did you fix them?
Have you worked with penalized sites? If so, how did you fix them?
Are speaking of manual actions penalty? I have dealt with couple of sites which have got MAP.
I worked them out all. And now everything is fine. Just tell what kind of penalty you are referring here.
It depends on the kind of penalty you get. Some things can be worked out, and your rankings will improve or whatever. For other things, it's just recommend that you start over with a brand new site. I've heard of marketers that have tried to game the system, and they got screwed. Even after they tried to fix stuff, it didn't help because their site had been like sandboxed and eventually deindexed. When it comes to ranking for certain things, there is a human component, so if they don't like what you're doing or whatever, there's nothing you can do about it.
A while back I purchased a de-indexed domain.... The domain name is awesome and has lots of potential hence why I took a bet on it... Suffice to say I put together some simple content, set it up with Google Webmaster tools and submitted a reconsideration request, noting that within WMT that it stated that there was a manual penalty.... Its taken a few months, but a few days ago I got the message that the domain has been approved and is already back in the index.... Hence it can be easy to fix if you are working from scratch...
In other cases you will need to fix your website, disavow any bad links and then make an appeal/reconsideration request if its a manual penalty otherwise you'll have to wait it out for the next penguin/panda refresh...
The Following User Says Thank You to elcidofaguy For This Useful Post:
Nytshade (03-10-2016)
I agree with the poster above. I have done this a few times before but it can take many months for the site to recover. Even after doing all of the above it never really ranked like it used to so I don't think it ever truly recovered. I would consider purchasing a new domain and then 301 the old domain to the new domain.My Personal Bluehost Review - How to start a Blog (3 Step Guide)
I'm also facing with the same your problem, my site was being stable for a long time but then suddenly drop a lot of traffic by the mid December 2016. I also don't know why and I'm finding the problem. Because I'm using 100% white hat SEO and SEM then I hope this not a big issue and Google will not ban or give penalty my site.
Good luck to you,► Godaddy Renewal Coupon 35% Off Domain & Hosting Latest in 2017
► Godaddy VPS Coupon Free 1 month Active and Latest in 2017
I built a small few page Wordpress site and then I found out about the penalty after I added the site to my Google search console. After I found out about the penalty I did a lot of reading on how to get the penalty taken off the domain. I then added some more quality posts to my site, an about us page, a contact page and a privacy policy and terms page.
After I finished with what I was going to do for the reconsideration request I submitted it and it took less than 2 weeks to remove the manual penalty. I was actually surprised because I had been told that these usually take about a month or so. I think because of all the types of pages, policies, posts (unique and self-written) and contact information this helped get it taken care of quicker.
I would recommend just creating a good website that looks nice, clean and legitimate then submit the request and if you did a good job then you'll probably get the penalty removed.
Newer Threads
Is there a way to markup a zip code to give it relevance?By denvercardonations in forum Search Engine OptimizationReplies: 4 | Views: 320Last post by tcoder, 10-11-2016, 11:14 PM
Facebook JailBy samilee80 in forum Social MediaReplies: 6 | Views: 444Last post by Gecko, 01-21-2017, 10:30 AM
404 errors and cpanel?By denvercardonations in forum Search Engine OptimizationReplies: 2 | Views: 408Last post by JoseBarreiro, 03-16-2016, 05:12 AM
Where can I upload PDFs that Google will crawl?By denvercardonations in forum Internet MarketingReplies: 4 | Views: 305Last post by coolmadhav, 01-17-2017, 11:40 AM
Content Marketing Ideas?By DavidLux in forum Internet MarketingReplies: 4 | Views: 310Last post by Gecko, 01-18-2017, 06:54 AM
Older Threads
Google will remove PageRank scores from public view?By vishwa in forum Search Engine OptimizationReplies: 8 | Views: 416Last post by geeksremote24-7, 03-11-2016, 10:25 AM
Selling I will build free landing page or one page website for your product or nicheBy wmguides in forum ServicesReplies: 0 | Views: 179Last post by wmguides, 03-10-2016, 08:02 AM
What is a cold email?By LailaMaulix in forum Internet MarketingReplies: 1 | Views: 164Last post by MrT, 03-10-2016, 04:58 AM
How do you stay focused on work at home?By jamesperez in forum Make Money OnlineReplies: 12 | Views: 497Last post by DavidFeldman, 03-17-2016, 01:25 PM
Multi Niche Website vs Single Niche Website?By jasonquey in forum Internet MarketingReplies: 3 | Views: 311Last post by Miguelito203, 03-14-2016, 05:25 AM
Latest Threads
Greetings from ScotlandBy austenite in forum New Member IntroductionsReplies: 8 | Views: 66Last post by DaRecordon, Today, 04:14 AM
Which Human Resources Management (HRM) Software will be for Web Hosting Provider?By HosterDaddy in forum Content Management SystemsReplies: 0 | Views: 34Last post by HosterDaddy, Yesterday, 03:58 PM
TCAdmin VS GameCPBy HosterDaddy in forum Hosting Software and Control PanelsReplies: 3 | Views: 43Last post by HosterDaddy, Today, 04:20 AM
Need Suggestion on cPanel Average LoadBy HosterDaddy in forum Hosting Security and TechnologyReplies: 7 | Views: 77Last post by HosterDaddy, Yesterday, 08:22 PM
Buying Looking for Best Design for Our SiteBy HosterDaddy in forum Graphics & DesignReplies: 0 | Views: 24Last post by HosterDaddy, Yesterday, 12:41 PM
Similar Threads
XRecommended Thread
How to build links without getting penalized by Google?By Tshepo in forum Search Engine OptimizationReplies: 11 | Views: 865Last post by varunsharma, 01-11-2016, 06:41 AM
Need affiliate sites in Malaysia for Ecommerce SitesBy rahulsetia007 in forum Affiliate MarketingReplies: 3 | Views: 758Last post by Nytshade, 03-16-2015, 01:26 PM
Selling PR 3 Health Sites | High quality SitesBy speed202 in forum Link SalesReplies: 2 | Views: 1689Last post by cheryl smith, 11-12-2014, 06:03 AM
Reseller VS VPS/Dedicated (Explained)By Luxin Host in forum Reseller Hosting


text: I dined at Alma for Sunday brunch with a few friends. The restaurant is so well decorated and poised I expected our brunch visit to correlate with the upscale ambience and prices. However, we were slightly let down. It started with a friend's coffee being forgotten and when the server was reminded, it a appeared that it was coming and... More