The article discusses the justification for disparities in the local government supply. Equality can be defined as equality in the individual's `terms of trade' in respect of the municipality (benefit/effort equation), and the distribution of specific local government services. There are four normative considerations which may determine the degree of inequality: (a) the residents of municipalities may have different preferences for various municipal services, (b) the value of local democracy, (c) the incentives which result in an effective use of society's resources, and (d) the limitations in the capacity of the central authorities to control a large public sector.
Buchanan, J.M.
(1950) `Federalism and Fiscal Equity', American Economic Review40: 583-599.
2.
Buchanan, J.M.
(1952) `Federal Grants and Resource Allocation', Journal of Political Economy60: 208-217.
3.
Dahl, R.
and E.R. Tufte (1973) Size and Democracy. Stanford, CA: Stanford University Press.
4.
Downs, A.
(1957) An Economic Theory of Democracy. New York: Harper and Row.
5.
Ekker, H.
and Å. Seiersten (1988) `Mot en ny form for statlig styring?' i F. Kjellberg, Nytt inntektssystem - nye utfordringer for kommuner og stat. Oslo: Kommuneforlaget/NORAS.
6.
Elster, J.
(1989a) `Er ulikhet rettferdig?'Vitenskap og politikk. Oslo: Universitetsforlaget.
7.
Elster, J.
(1989b) `Offentlighet og deltakelse. To teorier om deltakerdemokratiet?'Vitenskap og politikk. Oslo: Universitetsforlaget.
8.
Hansen, T.
(1978) `Central Controls and Local Budgeting Behaviour: A Test of some Partial Models', Policy and Politics6: 299-319.
9.
Heald, D.
(1983) Public Expenditure. Oxford: Martin Robertson.
10.
Hirschman, A.O.
(1970) Exit, Voice and Loyalty. Cambridge, MA: Harvard University Press.
11.
Le Grand, J.
(1975) `Fiscal Equity and Central Government Grants to Local Authorities', The Economic Journal85: 531-547.
12.
Lindseth, K.E.
(1988) `Helsetjenestens refusjonsutgifter - En enalyse av regnskapstall for 1985-87', Sosialdepartementet rapportserie, Report no. 11/1988, Ministry of Social Affairs.
13.
Musgrave, R.A.
(1959) The Theory of Public Finance. New York: McGraw Hill.
14.
Musgrave, R.A.
(1986) `Economics of Fiscal Federalism', reprinted in Public Finance in a Democratic Society, vol. II. Oxford: Wheatsheaf. (Originally published 1971.)
15.
Musgrave, R.A.
(1986) `Economics of Fiscal Federalism'. Public Finance in a Democratic Society, vol. II. Oxford: Wheatsheaf Books.
OECD
(1987) Managing and Financing Urban Services. Paris: OECD.
18.
Pigou, A.C.
(1929) The Economics of Welfare, 3rd edn.London: Macmillan.
19.
Rattsø, J.
(1988) `Fri beskatning for kommunene og det nye inntektssystemet', Sosialøkonomen42: 6-8.
20.
Rubinfeld, D.L.
(1987) `The Economics of the Local Public Sector', in A.J. Auerbach and M. Feldstein (eds) Handbook of Public Economics, vol. II, ch. 11. Amsterdam: Elsevier/North-Holland.
21.
Scott, A.D.
(1950) `A Note on Grants in Federal Countries', Economica17.
22.
Sharpe, L.J.
(1970) `Theories and Values of Local Government', Political Studies18: 153-174.
23.
Thurow, L.C.
(1970) `Aid to State and Local Governments', National Tax Journal33: 23-35.
24.
Tiebout, C.M.
(1956) `A Pure Theory of Local Expenditure', Journal of Political Economy64: 416-424.
25.
Topman, N.
(1987) `Local Government Economics', in R. Millwardet al., Public Sector Economics. London/New York: Longman.
26.
Whalen, H.
(1960) `Ideology, Democracy, and the Foundations of Local Self-Government', The Canadian Journal of Economics and Political Science26: 377-395.
27.
Young, K.
(1986) `The Justification for Local Government', in M. Goldsmith, Essays on the Future of Local Government. University of Salford.
