Borge, Lars-Erik; Tovmo, Per - In: FinanzArchiv: Public Finance Analysis 65 (2009) 2, pp. 200-219
The paper analyzes the intertemporal spending behavior of Norwegian local governments with particular attention to … liquidity constraints imposed by balanced-budget rules. The main findings are: (i) On average, local government spending … behavior is neither perfectly forward looking nor fully myopic. (ii) Local governments with good fiscal conditions behave more …