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| Tekijä: | Aaberge, R. (et. al) |
| Otsikko: | The distributional impact of public services when needs differ |
| Lehti: | Journal of Public Economics
2010 : OCT, VOL. 94:9-10, p. 549-562 |
| Asiasana: | income distribution public expenditure economic stability public services equality Norway |
| Kieli: | eng |
| Tiivistelmä: | Despite a broad consensus on the need to recognize the value of public services in distributional analysis, little reliable evidence exists on how inclusion of such non-cash income actually impacts poverty and inequality estimates. Particularly, the equivalence scales applied to cash income may not be appropriate when including non-cash income, as the receipt of public services is likely associated with particular needs. This article proposes a theory-based framework designed to offer a coherent assessment of the distributional impact of local public services. The valuation of public services, identification of target groups, expenditure allocation to target groups, and adjustment for different needs are derived from a model of local government spending behaviour. Using data from Norwegian municipal accounts and administrative registers we found that the inclusion of non-cash income decreases income inequality by about 15% and poverty rates by almost a third. Nevertheless, adjusting for differences in needs for public services across population subgroups offsets about a half of the decrease in inequality and some of the poverty decrease, as well. |
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