Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82916
Authors: 
Borge, Lars-Erik
Dahlberg, Matz
Tovmo, Per
Year of Publication: 
2001
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2001:10
Abstract: 
The paper investigates the intertemporal spending behavior of Scandinavian local governments with particular attention to liquidity constraints imposed by balanced-budget-rules and other regulations. The main finding is that Danish local governments are more able to smooth current expenditures than their Norwegian and Swedish counterparts. Whereas the permanent-income hypothesis cannot be rejected for Denmark, it is in most cases rejected for Norway and Sweden. The Swedish system of market-based control and the Norwegian system of administrative control seem to produce similar results in terms of consumption smoothing.
Subjects: 
Local government consumption
Intertemporal decision-making
JEL: 
D99
H72
Document Type: 
Working Paper

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