Flat grant categorical aid just requires that the district per-pupil budget constraint be modified as follows:
where ca0 is the matching rate. There are tildes on rand v to remind us that households may change their purchases of housing services or their local tax rate because they have to pay income or sales taxes to fund the flat grants and matching grants.
So long as the vector of demographic variables, Xi9 includes only factors that are exogenous to the conduct of a school district (at least in the short-run) and the tax base that funds categorical aid is invariant to an individual district’s conduct (for instance, an income or sales tax), either type of categorical aid is a perfectly standard fiscal federalism problem. We expect flat grants to have income effects and matching grants to have both income and substitution effects. We may also expect flypaper effects.
We are a reliable lender with upfront rates and fair APRs that you are always aware of in advance. Our payday instant loans are as transparent as they get, so you should not be having nay doubts before you contact us for a loan. You can apply any moment at other and get funded as soon as you need.