Advanced Search
MyIDEAS: Login

The Impact of Local Public Services and Geographical Cost of Living Differences on Poverty Estimates

Contents:

Author Info

  • Rolf Aaberge
  • Audun Langørgen
  • Magne Mogstad
  • Marit Østensen

    ()
    (Statistics Norway)

Abstract

Despite a broad consensus on the need to account for the value of public services and geographical cost of living differences on the measurement of poverty, there is little reliable evidence on how these factors actually affect poverty estimates. Unlike the standard approach in studies of the distribution of public services, this paper employs a method for valuing sector-specific local public services that accounts for differences between municipalities in the costs and capacity to produce public services. Furthermore, recipient frequencies in various demographic groups are used as the basis for determining the allocation of the value of these services on citizens of the municipalities. Geographical differences in living costs are accounted for by using municipal housing price indices or by replacing the country-specific poverty line with municipal-specific poverty lines. Applying Norwegian register data for the period 1993-2001, we find that disregarding the value of local public services and geographic cost of living differences yields a misleading picture of poverty.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ssb.no/a/publikasjoner/pdf/DP/dp551.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 551.

as in new window
Length:
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:ssb:dispap:551

Contact details of provider:
Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway
Phone: (+47) 21 09 00 00
Fax: (+47) 21 09 49 73
Email:
Web page: http://www.ssb.no/en/
More information through EDIRC

Related research

Keywords: Poverty; public services; in-kind transfers; geographical cost of living differences; housing price indices; municipal-specific poverty lines;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Magne Mogstad & Audun Langørgen & Rolf Aaberge, 2007. "Region-specific versus country-specific poverty lines in analysis of poverty," Journal of Economic Inequality, Springer, vol. 5(1), pages 115-122, April.
  2. 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.
  3. Hill, Robert J, 1997. "A Taxonomy of Multilateral Methods for Making International Comparisons of Prices and Quantities," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 49-69, March.
  4. Rolf Aaberge, 1999. "Samling Errors and Cross-Country Comparisons of Income Inequality," Discussion Papers 252, Research Department of Statistics Norway.
  5. 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.
  6. Jahyeong Koo & Keith Phillips & Fiona Sigalla, 1997. "Measuring regional cost of living," Working Papers 9713, Federal Reserve Bank of Dallas.
  7. Stephen Malpezzi & Richard K. Green, 1995. "What’s Happened to the Bottom of the Housing Market?," Wisconsin-Madison CULER working papers 95-16, University of Wisconsin Center for Urban Land Economic Research.
  8. Erik Fjærli & Rolf Aaberge, 2000. "Tax Reforms, Dividend Policy and Trends in Income Inequality Empirical Evidence based on Norwegian Data," Discussion Papers 284, Research Department of Statistics Norway.
  9. J. Peter Neary, 2004. "Rationalizing the Penn World Table: True Multilateral Indices for International Comparisons of Real Income," American Economic Review, American Economic Association, vol. 94(5), pages 1411-1428, December.
  10. Raj Chetty & Emmanuel Saez, 2004. "Dividend Taxes and Corporate Behavior: Evidence from the 2003 Dividend Tax Cut," NBER Working Papers 10841, National Bureau of Economic Research, Inc.
  11. Sen, Amartya, 1979. " Issues in the Measurement of Poverty," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 285-307.
  12. Rolf Aaberge & Audun Langørgen, 2003. "Measuring the Benefits from Public Services The Effects of Local Government Spending on the Distribution of Income in Norway," Discussion Papers 339, Research Department of Statistics Norway.
  13. Dean Jolliffe, 2006. "Poverty, Prices, and Place: How Sensitive is the Spatial Distribution of Poverty to Cost of Living Adjustments?," Economic Inquiry, Western Economic Association International, vol. 44(2), pages 296-310, April.
  14. Kenneth Rogoff, 1996. "The Purchasing Power Parity Puzzle," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 647-668, June.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Audun Langørgen, 2012. "A structural approach for analyzing fiscal equalization," Discussion Papers 715, Research Department of Statistics Norway.
  2. Grigorescu, Adriana, 2010. "Serviciile publice între nevoia cetăţeanului şi posibilităţile administraţiei
    [Public services between the citizen need and administration potential]
    ," MPRA Paper 25132, University Library of Munich, Germany.
  3. 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.
  4. Verbist, G. (Gerlinde) & Matsaganis, M. (Manos), 2012. "GINI DP 53: The Redistributive Capacity of Services in the EU," GINI Discussion Papers 53, AIAS, Amsterdam Institute for Advanced Labour Studies.
  5. Rolf Aaberge & Magne Mogstad, 2010. "Robust inequality comparisons," Working Papers 163, ECINEQ, Society for the Study of Economic Inequality.
  6. Panos Tsakloglou & Christos Koutsampelas, 2012. "The distribution of full income in Greece," DEOS Working Papers 1207, Athens University of Economics and Business.
  7. 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).
  8. Francesco Figari & Paulus, A. (Alari), 2012. "GINI DP 28: The impact of indirect taxes and imputed rent on inequality: A comparison with cash transfers and direct taxes in five EU countries," GINI Discussion Papers 28, AIAS, Amsterdam Institute for Advanced Labour Studies.
  9. Rolf Aaberge & Audun Langørgen & Petter Lindgren, 2013. "The distributional impact of public services in," Discussion Papers 746, Research Department of Statistics Norway.
  10. Michael Förster & Gerlinde Verbist, 2013. "Money or kindergarten? Distributive effects of cash versus in-kind family transfers for young children," ImPRovE Working Papers 13/04, Herman Deleeck Centre for Social Policy, University of Antwerp.
  11. Figari, Francesco & Paulus, Alari, 2013. "The distributional effects of taxes and transfers under alternative income concepts: the importance of three ‘I’s," EUROMOD Working Papers EM15/13, EUROMOD at the Institute for Social and Economic Research.
  12. Jon H. Fiva & Olle Folke & Rune J. Sørensen, 2013. "The Power of Parties," CESifo Working Paper Series 4119, CESifo Group Munich.
  13. Francesco Figari & Alari Paulus & Holly Sutherland & Panos Tsakloglou & Gerlinde Verbist & Francesca Zantomio, 2012. "Taxing home ownership: distributional effects of including net imputed rent in taxable income," DEOS Working Papers 1209, Athens University of Economics and Business.
  14. Bérénice Storms & Tim Goedemé & Karel Van den Bosch & Kristof Devuyst, 2013. "Towards a common framework for developing cross-nationally comparable reference budgets in Europe," ImPRovE Working Papers 13/02, Herman Deleeck Centre for Social Policy, University of Antwerp.
  15. 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.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:551. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (J Bruusgaard).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.