Course content

The local governments are responsible for most of the public sector services in the Norwegian welfare state. Fiscal federalism is about the relationship between the local and central governments. Different countries choose different degree of centralisation and decentralisation within the public sector, both with regard to the responsibility of public sector services and the financing of the services. Main topics in the course are the design of the grant system, the regulation of local tax policy, local government structure and the division of responsibility of public sector goods and services.

Learning outcome

Knowledge

You learn

• economic interaction between central and local governments
• organization and financing of welfare services and collective goods
• the decentralization theorem, principles for the organization of government sector
• competition and mobility as mechanisms for efficiency
• political decisions about centralization and decentralization

Skills

You should be able to

• discuss key theories and models for the organization of the pubic sector
• analyze a broad set of issues relevant for the relationship between central and local governments
• discuss how the political system evaluates centralization and decentralization

General competence

You should be able to

• read and understand reports and research articles dealing with issues discussed in the course
• use the content of the course in your own academic work.

Learning methods and activities

4 hours of lectures every week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term.

The course is an optional PhD course, and it is not taught every autumn semester. SØK8627 follows the same teaching as SØK3527. Contact the department (kontakt@econ.ntnu.no) to get access to learning resources in Blackboard.

Compulsory assignments

• Obligatory course work

Recommended previous knowledge

Compulsory courses in Master’s degree in Economics.

Required previous knowledge

None.

Course materials

Announced at the beginning of the term.

Credit reductions