Partial fiscal decentralization and demand responsiveness of the local public sector: Theory and evidence from Norway

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• 作者：Lars-Erik Borge^a ; Jan K. Brueckner^b ; ^{jkbrueck@uci.edu" class="auth_mail} ; Jorn Rattsø ; ^a
• 关键词：Fiscal decentralization ; Tiebout ; Norway
• 刊名：Journal of Urban Economics
• 出版年：March, 2014
• 年：2014
• 卷：80
• 期：Complete
• 页码：153-163
• 全文大小：383 K

文摘

This paper provides an empirical test of a principal tenet of fiscal federalism: that spending discretion, when granted to localities, allows public-good levels to adjust to suit local demands. The test is based on a simple model of partial fiscal decentralization, under which earmarking of central transfers for particular uses is eliminated, allowing funds to be spent according to local tastes. The greater role of local demand determinants following partial decentralization is confirmed by the paper鈥檚 empirical results, which show the effects of the 1986 Norwegian reform.