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

Fredrik Carlsen

Working Paper Series from 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.

Keywords: Fiscal competition; Local government (search for similar items in EconPapers)
JEL-codes: H73 R51 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2006-09-01
New Economics Papers: this item is included in nep-geo, nep-mac, nep-pbe and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:nst:samfok:8006

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