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Local Government Service Production: The Politics of Allocative Sluggishness

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Author Info
Borge, Lars-Erik
Rattso, Jorn
Sorensen, Rune

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Abstract

A partial adjustment model with endogenous speed of adjustment is developed to analyze how pressure from interest groups and mass media influence the adjustment process of local governments. A survey questionnaire to the local politicians is used to measure the pressure indicators. Based on a combined cross-section and time-series data base for Norwegian local governments, the sluggishness of the adjustment process is estimated. The dynamics of the adjustment process is shown to reflect the activity of interest groups and media pressure. Pressure groups related to primary education explain an important part of the sluggishness observed. Pressure groups promoting kindergartens and health care/care for the elderly stimulate reallocations. Copyright 1995 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 82 (1995)
Issue (Month): 1-2 (January)
Pages: 135-57
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Handle: RePEc:kap:pubcho:v:82:y:1995:i:1-2:p:135-57

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  1. Antti Moisio, 2002. "Essays on Finnish Municipal Finance and Intergovernmental Grants," Research Reports 93, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  2. Rosella Levaggi & Roberto Zanola, 2003. "Flypaper Effect and Sluggishness: Evidence from Regional Health Expenditure in Italy," Asia-Pacific Financial Markets, Springer, vol. 10(5), pages 535-547, September. [Downloadable!] (restricted)
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  3. Antti Moisio, 2001. "On Local Government Spending and Taxation Behaviour - Effect of population size and economic condition," ERSA conference papers ersa01p170, European Regional Science Association. [Downloadable!]
  4. Bergström, Pål & Dahlberg, Matz & Johansson, Eva, 1998. "Municipal labour demand," Working Paper Series 1998:1, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  5. Dahlberg, Matz & Jacob, Johanna, 2000. "Sluggishness, Endogeneity and the Demand for Local Public Services," Working Paper Series 2000:17, Uppsala University, Department of Economics. [Downloadable!]
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  6. Bergström, Pål & Dahlberg, Matz & Johansson, Eva, 1998. "Municipal Labour Demand - Sweden 1988 - 1995," Working Paper Series 1998:24, Uppsala University, Department of Economics. [Downloadable!]
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  7. Per Pettersson, 2000. "Do Parties Matter for Fiscal Policy Choices," Econometric Society World Congress 2000 Contributed Papers 1373, Econometric Society. [Downloadable!]
  8. Antti Moisio, 2001. "On Local Government Spending and Taxation Behaviour - effect of population size and economic condition," Discussion Papers 257, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  9. Rolf Aaberge and Audun Langørgen, 1997. "Fiscal and Spending Behavior of Local Governments: An Empirical Analysis Based on Norwegian Data," Discussion Papers 196, Research Department of Statistics Norway. [Downloadable!]
  10. Dahlberg, Matz & Forslund, Anders, 1999. "Direct displacement effects of labour market programmes: the case of Sweden," Working Paper Series 1999:7, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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