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Local Government Allocation of Labour and the Grant System: An Applied Model Analysis of Local Government Behaviour in Norway

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  • J Rattsø

    (Institute of Economics, University of Trondheim, N-7055 Dragvoll, Norway)

Abstract

The behaviour of local governments in Norway is investigated in a model of allocation of labour between local services. The model allows for an analysis of the substitution effects in the allocation of local government resources. The results indicate how costs, taxes, grants, and socioeconomic factors influence local governments. The effects of the grant system are emphasized, and it is concluded that selective grants act as general income. As a result, the recent reform in Norway which consolidated the special purpose grants must be expected to have a small effect on allocation of resources.

Suggested Citation

  • J Rattsø, 1989. "Local Government Allocation of Labour and the Grant System: An Applied Model Analysis of Local Government Behaviour in Norway," Environment and Planning C, , vol. 7(3), pages 273-284, September.
    • Handle: RePEc:sae:envirc:v:7:y:1989:i:3:p:273-284
    DOI: 10.1068/c070273
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    References listed on IDEAS

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    1. Tresch, Richard W., 2014. "Public Finance," Elsevier Monographs, Elsevier, edition 3, number 9780124158344.
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    Cited by:

    1. Rolf Aaberge & Audun Langørgen, 1997. "Fiscal and Spending Behavior of Local Governments: An Empirical Analysis Based on Norwegian Data," Discussion Papers 196, Statistics Norway, Research Department.
    2. Jorid Kalseth & Jørn Rattsø, 1998. "Spending and Overspending in Local Government Administration: A Minimum Requirement Approach Applied to Norway," Chapters, in: Jørn Rattsø (ed.), Fiscal Federalism and State–local Finance, chapter 19, pages 339-351, Edward Elgar Publishing.
    3. Lars-Erik Borge & Jørn Rattsø, 1998. "Demographic Shift, Relative Costs and the Allocation of Local Public Consumption in Norway," Chapters, in: Jørn Rattsø (ed.), Fiscal Federalism and State–local Finance, chapter 5, pages 71-92, Edward Elgar Publishing.
    4. McArthur, David Philip & Gregersen, Fredrik A. & Hagen, Terje P., 2014. "Modelling the cost of providing ambulance services," Journal of Transport Geography, Elsevier, vol. 34(C), pages 175-184.
    5. Halsteinli, Vidar & Ose, Solveig Osborg & Torvik, Heidi & Hagen, Terje P., 2006. "Allocation of labour to somatic and psychiatric specialist care--The effects of earmarked grants," Health Policy, Elsevier, vol. 78(2-3), pages 115-127, October.
    6. Hilland, Geir Haakon & Hagen, Terje P. & Martinussen, Pål E., 2023. "Stayin’ alive: The introduction of municipal in-patient acute care units was associated with reduced mortality and fewer hospital readmissions," Social Science & Medicine, Elsevier, vol. 326(C).

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