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Local Government Equality: Why Should Disparities be Accepted?

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  • Rune J. Sørensen

Abstract

The article discusses the justification for disparities in the local government supply. Equality can be defined as equality in the individual's `terms of trade' in respect of the municipality (benefit/effort equation), and the distribution of specific local government services. There are four normative considerations which may determine the degree of inequality: (a) the residents of municipalities may have different preferences for various municipal services, (b) the value of local democracy, (c) the incentives which result in an effective use of society's resources, and (d) the limitations in the capacity of the central authorities to control a large public sector.

Suggested Citation

  • Rune J. Sørensen, 1991. "Local Government Equality: Why Should Disparities be Accepted?," Journal of Theoretical Politics, , vol. 3(4), pages 463-477, October.
    • Handle: RePEc:sae:jothpo:v:3:y:1991:i:4:p:463-477
    DOI: 10.1177/0951692891003004005
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    References listed on IDEAS

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    1. James M. Buchanan, 1952. "Federal Grants and Resource Allocation: A Reply," Journal of Political Economy, University of Chicago Press, vol. 60(6), pages 536-536.
    2. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
    3. Rubinfeld, Daniel L., 1987. "The economics of the local public sector," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 11, pages 571-645, Elsevier.
    4. Le Grand, Julian, 1975. "Fiscal Equity and Central Government Grants to Local Authorities," Economic Journal, Royal Economic Society, vol. 85(339), pages 531-547, September.
    5. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    6. James M. Buchanan, 1952. "Federal Grants and Resource Allocation," Journal of Political Economy, University of Chicago Press, vol. 60(3), pages 208-208.
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