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Local government preferences, individual needs, and the allocation of social assistance

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Author Info
Audun Langørgen and Dag Rønningen () (Statistics Norway)

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Abstract

Governments that pursue welfare and equalization goals frequently target cash transfers to individuals that suffer from limited economic opportunities and poverty. To achieve the desired allocation of welfare benefits, evaluation of individual needs is thus required. However, the political support for redistribution may vary across communities and governments, depending on ideology of the dominant political parties, political power of interest groups, and geographic, cultural and social diversity within the community. The purpose of this paper is to analyze the allocation of social assistance to individuals by local governments in Norway. Available data on individual characteristics as well as variables at the municipal level allow us to separate the impact of individual needs from the impact of different local government treatment. The results show that priorities across individuals are affected by characteristics that capture individual economic opportunities and needs, whereas theories that suggest different priorities between local governments find little support.

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Publisher Info
Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 380.

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Date of creation: Jul 2004
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Handle: RePEc:ssb:dispap:380

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Related research
Keywords: Social assistance; Income distribution; Local public finance;

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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References listed on IDEAS
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  1. Borge, Lars-Erik & Rattso, Jorn, 1995. "Demographic shift, relative costs and the allocation of local public consumption in Norway," Regional Science and Urban Economics, Elsevier, vol. 25(6), pages 705-726, December. [Downloadable!] (restricted)
  2. Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February. [Downloadable!] (restricted)
  3. Borge, Lars-Erik, 1995. " Economic and Political Determinants of Fee Income in Norwegian Local Governments," Public Choice, Springer, vol. 83(3-4), pages 353-73, June.
  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. [Downloadable!] (restricted)
  5. Kau, James B & Rubin, Paul H, 2002. " The Growth of Government:," Public Choice, Springer, vol. 113(3-4), pages 389-402, December. [Downloadable!] (restricted)
  6. Olsen, Randall J, 1978. "Note on the Uniqueness of the Maximum Likelihood Estimator for the Tobit Model," Econometrica, Econometric Society, vol. 46(5), pages 1211-15, September. [Downloadable!] (restricted)
  7. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation, Yale University. [Downloadable!]
  8. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August. [Downloadable!] (restricted)
  9. Ashworth, John & Heyndels, Bruno & Smolders, Carine, 2002. "Redistribution as a Local Public Good: An Empirical Test for Flemish Municipalities," Kyklos, Blackwell Publishing, vol. 55(1), pages 27-56.
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