Myopic or Constrained by Balanced-Budget Rules? The Intertemporal Spending Behavior of Norwegian Local Governments - 10.1628/001522109X466518 - Mohr Siebeck
Wirtschaftswissenschaft

Lars-Erik Borge, Per Tovmo

Myopic or Constrained by Balanced-Budget Rules? The Intertemporal Spending Behavior of Norwegian Local Governments

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Jahrgang 65 () / Heft 2, S. 200-219 (20)

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The paper analyzes the intertemporal spending behavior of Norwegian local governments with particular attention to liquidity constraints imposed by balanced-budget rules. The main findings are: (i) On average, local government spending behavior is neither perfectly forward looking nor fully myopic. (ii) Local governments with good fiscal conditions behave more forward looking than other local governments. (iii) A high degree of party fragmentation is associated with less forward-looking behavior. The overall assessment is that the departure from rational forward-looking behavior reflects both liquidity constraints imposed by balanced-budget rules and myopic behavior.
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Lars-Erik Borge Keine aktuellen Daten verfügbar.

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