Why Is Central Regulation of Local Spending Decisions So Pervasive? Evidence From a Case Study

摘要: While the “classical” theory of fiscal federalism argues that local authorities should have substantial discretion to set budgetary mix, surveys show central regulation spending decisions is pervasive. Norway provides an ideal setting for studying regulations. An attempt decentralize choice levels, block grant reform, has been reversed in recent years. This article presents a case study interaction between county and national government from 1986, when reform was implemented, 1992. The concludes introduced new regulations prevent distorting order elicit higher grants.