Local government debt, LRE 0.40 --
Government duration, LRE -0.04 --
Party fragmentation, LRE -0.22 -0.76
Notes: Only significant effects reported. The calculations are based on regressions 3a and 3b in Table B3. LRE is long-run elasticity and SRE is short-run elasticity. Elasticity at mean for political variables.
Table 4. National versus local decisions
Legend for Chart:
A - Dependent variable
B - Local versus national income: W
C - Local versus national income: T/Cl
D - Local versus national income: St/Cl
E - Local versus national income: Sp/St
F - Local versus national ideology: W
G - Local versus national ideology: T/Cl
H - Local versus national ideology: St/Cl
I - Local versus national ideology: Sp/St
B C D E
F G H I
1948-1990 1948-1990 1948-1990 1974-1990
1948-1990 1948-1990 1948-1990 1974-1990
0.548 0.756 0.926 0.012
0.601 0.479 0.135 0.240
0.003 0.002 0.354 0.098
0.893 0.756 0.677 0.301
Notes: Regressions 3a and 3b in Tables B2-B3 without restrictions augmented with GDP and G in the tests for local versus national income, and with the share of socialists in local and national parliaments in the tests for local versus national ideology. In both cases the variables are included at level and at differenced form. Encomp(national) is an F-test for excluding local variables, and vice versa for Encomp(local). P-values presented.
GRAPH: Figure 1. Teacher real consumer wage (1990-NOK).
GRAPH: Figure 2. Teacher input per class.
GRAPH: Figure 3. Class size.
GRAPH: Figure 4. Teacher input per student.
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Appendix A: Data
Data sources are available on request.
W Real consumer wage, yearly nominal wage for
teachers deflated with the consumer price index.
Before 1958, W is calculated as total teacher wage
cost per teacher man-year. From 1959, W is
calculated as mean gross paid wage. Data are
not available, and nominal wage is interpolated,
during 1958, 1960-1962, 1964-1966 and 1968-1972.
WT Defined as W/P.
P Price index for public consumption divided with
the consumer price index.
T Number of teacher man-years. T is calculated as
the number of teachers in full post plus the half
of the teachers reported in part time post. The
definition of part-time post was changed in 1973.
Cl Number of classes.
St Number of students.
m Matching grant rate. Calculated as total earmarked
grants in relation to total school spending in the
equation for non-teacher spending per student.
Because total school spending is not available
for 1958-1972, m is calculated as total earmarked
grants in relation to WT*T in the class size
GDP Gross domestic product per capita deflated with
the consumer price index.
G Municipal and county spending per capita deflated
with the price index of public consumption. G
includes both consumption and investment
expenditures. Interest payment and downpayments
on loans are excluded.
infl Yearly percentage change in the consumer price
ELDERLY Share of population above age 65.
DIV Share of divorces to total marriages.
CENT Inverse of the share of total man-years in
W Yearly wage rate in manufacturing deflated by
consumer price index.
UNEM Average unemployment ratio.
VAC The vacancy rate in primary school, measured as
the share of teachers in full post without teacher
training course. These teachers are employed on
FEMALE The share of female teachers among teachers in
DEBT Municipal and county total debt per capita
deflated with the price index of public
SDM Dummy variable for the majority government of the
social democratic party, 1946-1961.
TBC Dummy variable for the period with stable
two-block competition, 1962-1973.
SOCN Share of socialist representatives in the national
parliament. Representatives from the Labour Party,
Communist Party and Socialist Left Party are
treated as socialists.
SOCL Share of votes on socialist parties in local
COAL1 Coalition government in minority.
COAL2 One-party government in minority.
COAL3 Coalition government in majority.
DURN Duration of the national government in years.
HERFN Herfindahl index for party fragmentation of the
national parliament, calculated as
[Multiple line equation(s) cannot be represented
in ASCII text]
where SHp is the share of the seats held by
HERFL Herfindahl index for party fragmentation of local
councils, calculated as (A1), but Slip is the
share of votes in local elections.
FREEZE Income policy dummy due to wage freeze. FREEZE =
1 in 1979 and 1988, 0.5 in 1989 and 0 otherwise.
D58, D7390 Dummy variables for 1958 and 1973-1990