Do local authorities set local fiscal variables to influence population flows?
AbstractThe paper presents an empirical test of local fiscal competition in Norway based on the observation that interregional migration during the business cycle creates very different incentives for rural and urban municipalities to influence population movements. Panel-data evidence is presented suggesting that municipalities indeed attempt to control population flows. The sensitivity of municipal spending and revenue decisions to population movements varies between municipalities in a way that is consistent with the municipalities' incentives to influence location decisions of households.
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Bibliographic InfoPaper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 8006.
Length: 19 pages
Date of creation: 01 Sep 2006
Date of revision:
Fiscal competition; Local government;
Find related papers by JEL classification:
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
- R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-06 (All new papers)
- NEP-GEO-2007-01-06 (Economic Geography)
- NEP-MAC-2007-01-06 (Macroeconomics)
- NEP-PBE-2007-01-06 (Public Economics)
- NEP-URE-2007-01-06 (Urban & Real Estate Economics)
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