Organizational Failure and Government Transfers: Evidence From an Experiment in the Financing of Mental Health Care / Richard G. Frank, Martin Gaynor.

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Frank, Richard G

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w3923.Publication details: Cambridge, Mass. National Bureau of Economic Research 1991.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: This paper makes use of a unique "natural experiment" in the design of intergovernmental grants. The State of Ohio has dramatically altered the method by which local public mental health care is financed. The manner in which the grant mechanism has been altered allows for the estimation of income compensated subsidy responses of local governmental entities. The empirical results indicate strong responses to the "new" incentives suggesting a direction for policy makers for dealing with some of the most vexing problems in mental health policy.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w3923 (Browse shelf(Opens below))	Not For Loan

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Previous	nber w3920 Identification and the Liquidity Effect of a Monetary Policy Shock /	nber w3921 Bank Runs: Liquidity and Incentives /	nber w3922 The Cleansing Effect of Recessions /	nber w3923 Organizational Failure and Government Transfers: Evidence From an Experiment in the Financing of Mental Health Care /	nber w3924 Income Shifting in U.S. Multinational Corporations /	nber w3925 The Effects of U.S. Tax Policy on the Income Repatriation Patterns of U.S. Multinational Corporations /	nber w3926 Labor Market Institutions, Liquidity Constraints, and Macroeconomic Stability /	Next

December 1991.

This paper makes use of a unique "natural experiment" in the design of intergovernmental grants. The State of Ohio has dramatically altered the method by which local public mental health care is financed. The manner in which the grant mechanism has been altered allows for the estimation of income compensated subsidy responses of local governmental entities. The empirical results indicate strong responses to the "new" incentives suggesting a direction for policy makers for dealing with some of the most vexing problems in mental health policy.