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Do local authorities set local fiscal variables to influence population flows?

Author

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  • Fredrik Carlsen

    () (Department of Economics, Norwegian University of Science and Technology)

Abstract

The 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.

Suggested Citation

  • Fredrik Carlsen, 2006. "Do local authorities set local fiscal variables to influence population flows?," Working Paper Series 8006, Department of Economics, Norwegian University of Science and Technology.
  • Handle: RePEc:nst:samfok:8006
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    File URL: http://www.svt.ntnu.no/iso/WP/2006/16PAPER3.pdf
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    More about this item

    Keywords

    Fiscal competition; Local government;

    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

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