TY  - JOUR
AU  - Frank,Richard G.
AU  - Gaynor,Martin
TI  - Organizational Failure and Government Transfers: Evidence From an Experiment in the Financing of Mental Health Care
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3923
PY  - 1994
Y2  - April 1994
UR  - http://www.nber.org/papers/w3923
L1  - http://www.nber.org/papers/w3923.pdf
N1  - Author contact info:
Richard Frank
Department of Health Care Policy
Harvard Medical School
180 Longwood Avenue
Boston, MA 02115
Tel: 617/432-0178
Fax: 617/432-1219
E-Mail: frank@hcp.med.harvard.edu

Martin Gaynor
Heinz College
Carnegie Mellon University
4800 Forbes Avenue,,Room 3008
Pittsburgh, PA 15213-3890
Tel: 412/268-7933
Fax: 412/268-5338
E-Mail: mgaynor@cmu.edu
AB  - 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.
ER  -