DISPLACEMENT EFFECTS OF FEDERAL HIGHWAY GRANTS
- 1 June 1987
- journal article
- Published by University of Chicago Press in National Tax Journal
- Vol. 40 (2) , 221-235
- https://doi.org/10.1086/ntj41788659
Abstract
The study assesses the degree to which Federal highway grants to States are shifted to other uses. It focuses on the Federal aid system of primary, secondary and urban roads, currently assisted with 3:1 matching grants. About 63 cents out of each new Federal dollar displace State ownsource outlays. There is evidence linking Federal grants to other, unaided highway expenditures, but no statistical support for their use for non-highway activities and no conclusive evidence for or against linkages to tax reduction.Keywords
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