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Public sector efficiency: the roles of political and budgetary institutions, fiscal capacity, and democratic participation

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  • Lars-Erik Borge

    ()

  • Torberg Falch

    ()

  • Per Tovmo

    ()

Abstract

The purpose of this paper is to investigate whether efficiency in public service provision is affected by political and budgetary institutions, fiscal capacity, and democratic participation. In order to address this issue we take advantage of a new global efficiency measure for Norwegian local governments. There is strong evidence that high fiscal capacity and a high degree of party fragmentation contributes to low efficiency. In addition we find that increased democratic participation tends to increase efficiency, while a centralized top down budgetary process is associated with low efficiency.
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Suggested Citation

  • Lars-Erik Borge & Torberg Falch & Per Tovmo, 2008. "Public sector efficiency: the roles of political and budgetary institutions, fiscal capacity, and democratic participation," Public Choice, Springer, vol. 136(3), pages 475-495, September.
  • Handle: RePEc:kap:pubcho:v:136:y:2008:i:3:p:475-495
    DOI: 10.1007/s11127-008-9309-7
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    More about this item

    Keywords

    Public sector efficiency; Political and budgetary institutions; Fiscal capacity; Democratic participation; H72; H75;

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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