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dc.contributor.authorAaberge, Rolf
dc.contributor.authorBhuller, Manudeep
dc.contributor.authorLangørgen, Audun
dc.contributor.authorMogstad, Magne
dc.date.accessioned2011-06-09T13:43:02Z
dc.date.available2011-06-09T13:43:02Z
dc.date.issued2010
dc.identifier.citationJournal of Public Economics, Vol. 94 (2010), No 9/10, pp 549-562en_US
dc.identifier.issn1879-2316
dc.identifier.urihttp://hdl.handle.net/11250/177780
dc.descriptionThis is the accepted version of a work that was accepted for publication in Journal of Public Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Public Economics, 94, (9/10), 549-562, (October 2010).en_US
dc.description.abstractDespite a broad consensus on the need to take into account the value of public services in distributional analysis, there is little reliable evidence on how the inclusion of such non-cash income actually affects poverty and inequality estimates. In particular, the equivalence scales applied to cash income are not necessarily appropriate when including noncash income, because the receipt of public services is likely to be associated with particular needs. In this paper, we propose a theory-based framework designed to provide a coherent evaluation of the distributional impact of local public services. The valuation of public services, identification of target groups, allocation of expenditures to target groups, and adjustment for differences in needs are derived from a model of local government spending behaviour. Using Norwegian data from municipal accounts and administrative registers we find that the inclusion of non-cash income reduces income inequality by about 15 percent and poverty rates by almost one-third. However, adjusting for differences in needs for public services across population subgroups offsets about half the inequality reduction and some of the poverty decrease.en_US
dc.language.isoengen_US
dc.publisher[Amsterdam] : Elsevieren_US
dc.subjectIncome distributionen_US
dc.subjectPovertyen_US
dc.subjectPublic servicesen_US
dc.subjectNon-cash incomeen_US
dc.subjectOffentlige tjenesteren_US
dc.subjectEquivalence scalesen_US
dc.subjectInntektsfordelingen_US
dc.subjectFattigdomen_US
dc.subjectVelferden_US
dc.subjectJEL classification: I30en_US
dc.subjectJEL classification: D31en_US
dc.subjectJEL classification: H72en_US
dc.subjectScientific articleen_US
dc.titleThe Distributional impact of public services when needs differen_US
dc.typeJournal articleen_US
dc.typePeer revieweden_US
dc.subject.nsiVDP::Social science: 200::Economics: 210en_US
dc.source.pagenumber549-562en_US
dc.source.volume94
dc.source.journalJournal of public economics
dc.source.issue9/10
dc.identifier.doihttps://doi.org/10.1016/j.jpubeco.2010.06.004


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