Local Government Allocation of Labour and the Grant System: An Applied Model Analysis of Local Government Behaviour in Norway

J Rattsø
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J Rattsø: Institute of Economics, University of Trondheim, N-7055 Dragvoll, Norway
Authors registered in the RePEc Author Service: Jorn Rattso

Environment and Planning C, 1989, vol. 7, issue 3, 273-284

Abstract: The behaviour of local governments in Norway is investigated in a model of allocation of labour between local services. The model allows for an analysis of the substitution effects in the allocation of local government resources. The results indicate how costs, taxes, grants, and socioeconomic factors influence local governments. The effects of the grant system are emphasized, and it is concluded that selective grants act as general income. As a result, the recent reform in Norway which consolidated the special purpose grants must be expected to have a small effect on allocation of resources.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirc:v:7:y:1989:i:3:p:273-284

DOI: 10.1068/c070273

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