Essays on Finnish Municipal Finance and Intergovernmental Grants

Antti Moisio

No 93, Research Reports from VATT Institute for Economic Research

Abstract: This PhD thesis is a collection of studies on Finnish municipal expenditures, revenues and intergovernmental grants. The main purpose of the study was to analyse the municipal expenditure variation between the matching grants system and the formula based grants system. The aim was also to analyse the expenditure effect of grants compared to that of taxable incomes and to reveal possible causal interrelationships between municipalities' revenues and expenditures. The first chapter introduces the theoretical aspects of local government finance. The second chapter analyses municipal expenditures using economic and demographic factors as explanatory variables. Chapter three analyses the effect of noninstitutional care on municipalities' elderly care expenditures and Finnish Social Security Institution expenditures. Chapter four examines the inter-temporal causal links between municipal own source revenue and spending decisions. Chapter five analyses the same causal links in subsections of municipalities, formed using population and economic condition as criteria.

Keywords: Grant reform, municipal expenditure variation, causality between municipal revenues and expenditures, Economic growth, Taloudellinen kasvu, Local public economics, Kunnallistalous, Taxation, Verotus, Effectiveness of public services, Julkisten palvelujen vaikuttavuus, H700 - State and Local Government; Intergovernmental Relations: General, O100 - Economic Development: General, (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (8)

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