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Measuring The Benefits From Public Services: The Effects Of Local Government Spending On The Distribution Of Income In Norway

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  • Rolf Aaberge
  • Audun Langørgen

Abstract

The purpose of this paper is to provide an evaluation of how local public in-kind benefits affect the distribution of income in Norway. To this end, a method that accounts for differences between municipalities in capacity to produce the same standard of public services is used for assessing the value of sector-specific local public services in each municipality. Moreover, recipient frequencies in various demographic groups are used as basis for determining the allocation of the assessed value of services on citizens of the municipalities. The empirical results show that inequality in the (marginal) distribution of municipal in-kind benefits is rather high. The contribution of municipal in-kind benefits to inequality in the distribution of extended income (cash (after-tax) income plus municipal in-kind benefits) proves, however, to be approximately neutral. Copyright 2006 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 52 (2006)
Issue (Month): 1 (03)
Pages: 61-83

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Handle: RePEc:bla:revinw:v:52:y:2006:i:1:p:61-83

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References

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  1. Ruggeri, G C & Van Wart, D & Howard, R, 1994. "The Redistributional Impact of Government Spending in Canada," Public Finance = Finances publiques, , vol. 49(2), pages 212-43.
  2. Aaberge, Rolf & Melby, Ingrid, 1998. "The Sensitivity of Income Inequality to Choice of Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 565-69, December.
  3. Gemmell, Norman, 1985. "The Incidence of Government Expenditure and Redistribution in the United Kingdom," Economica, London School of Economics and Political Science, vol. 52(27), pages 335-44, August.
  4. Aaberge, Rolf & Langorgen, Audun, 2003. " Fiscal and Spending Behavior of Local Governments: Identification of Price Effects When Prices Are Not Observed," Public Choice, Springer, vol. 117(1-2), pages 125-61, October.
  5. Audun Langørgen & Rolf Aaberge, 1999. "A Structural Approach for Measuring Fiscal Disparities," Discussion Papers 254, Research Department of Statistics Norway.
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Citations

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Cited by:
  1. Christos Koutsampelas & Panos Tsakloglou, 2013. "The distribution of full income in Greece," International Journal of Social Economics, Emerald Group Publishing, vol. 40(4), pages 311-330, April.
  2. Aaberge, Rolf & Bhuller, Manudeep & Langørgen, Audun & Mogstad, Magne, 2010. "The Distributional Impact of Public Services When Needs Differ," IZA Discussion Papers 4826, Institute for the Study of Labor (IZA).
  3. Paulus, Alari & Sutherland, Holly & Tsakloglou, Panos, 2009. "The Distributional Impact of In Kind Public Benefits in European Countries," IZA Discussion Papers 4581, Institute for the Study of Labor (IZA).
  4. Rolf Aaberge & Audun Langørgen & Petter Lindgren, 2013. "The distributional impact of public services in," Discussion Papers 746, Research Department of Statistics Norway.
  5. Hillringhaus, Tilman & Peichl, Andreas, 2010. "Die Messung von Armut unter Berücksichtigung regional divergierender Lebenshaltungskosten und öffentlicher Leistungen," IZA Discussion Papers 5344, Institute for the Study of Labor (IZA).
  6. Rolf Aaberge & Audun Langørgen & Magne Mogstad & Marit Østensen, 2008. "The Impact of Local Public Services and Geographical Cost of Living Differences on Poverty Estimates," Discussion Papers 551, Research Department of Statistics Norway.
  7. Gerlinde Verbist & Michael Föster & Vaalavou, M., 2013. "GINI DP 74: The Impact of Publicly Provided Services on the Distribution of Resources: Review of New Results and Methods," GINI Discussion Papers 74, AIAS, Amsterdam Institute for Advanced Labour Studies.
  8. Rolf Aaberge & Anthony B. Atkinson, 2008. "Top Incomes in Norway," Discussion Papers 552, Research Department of Statistics Norway.
  9. Panos Pashardes & Nicoletta Pashourtidou, 2007. "Consumer Welfare for Publicly Supplemented Private Goods: Age and Income Effects on Demand for Health Care," University of Cyprus Working Papers in Economics 6-2007, University of Cyprus Department of Economics.
  10. Francesco Scervini, 2009. "Political Economy of Director's Law: How Sincere Voters Decide on Cash and In-kind Redistribution in a Costly Political Framework," Working papers 8, Former Department of Economics and Public Finance "G. Prato", University of Torino.
  11. Panos Tsakloglou & Christos Koutsampelas, 2012. "The distribution of full income in Greece," DEOS Working Papers 1207, Athens University of Economics and Business.
  12. Amedeo Spadaro & Lucia Mangiavacchi & Ignacio Moral-Arce & Marta Adiego-Estella & Angela Blanco-Moreno, 2013. "Evaluating the redistributive impact of public health expenditure using an insurance value approach," The European Journal of Health Economics, Springer, vol. 14(5), pages 775-787, October.

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