{
  "title": "The Determinants and Efficiency of Local Authority Spending in England",
  "publication": "IMF Working Papers, January 1, 1991",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/the-determinants-and-efficiency-of-local-authority-spending-in-england-886",
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  "summary": "This paper analyzes the efficiency and determinants of local authority expenditure in England during 1989/90. The capitalization of local spending in house prices is used as a test of efficiency, and it is found that local services are in general excessive from this standpoint.",
  "sections": [
    {
      "heading": "Summary / Main findings",
      "content": "- The paper analyzes the efficiency and determinants of local authority expenditure in England during 1989/90.\n- The capitalization of local spending in house prices is used as a test of efficiency.\n- It is found that local services are in general excessive from the capitalization standpoint.\n- Application of the analysis to the recently introduced local government reforms suggest small effects on the overall level of spending."
    },
    {
      "heading": "Efficiency test: capitalization of local spending in house prices",
      "content": "- Method: Use capitalization of local spending in house prices as a test of efficiency.\n- Result: Local services are in general excessive when evaluated by capitalization in house prices."
    },
    {
      "heading": "Determinants of local government spending (estimated)",
      "content": "- Significant determinants identified:\n  - Local incomes\n  - The tax price faced by the electorate\n  - Local party control"
    },
    {
      "heading": "Policy implications and local government reforms",
      "content": "- Application of the estimated determinants and efficiency analysis to recently introduced local government reforms suggests:\n  - Small effects on the overall level of spending."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Expenditure, Housing, Housing prices, Income, Labor, National accounts, Prices\n- Keywords: authorities rise, benefit principle, government grant, Housing, Housing prices, Income, local authority expenditure, local government, property tax, spending authorities, tax price, thatcher government, United Kingdom government, WP\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-determinants-and-efficiency-of-local-authority-spending-in-england-886"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/30/the-determinants-and-efficiency-of-local-authority-spending-in-england-886/index.md)",
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    "Authors: James P. F. Gordon, Tamim Bayoumi",
    "Published: January 1, 1991",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451927108.001",
    "The paper analyzes the efficiency and determinants of local authority expenditure in England during 1989/90.",
    "The capitalization of local spending in house prices is used as a test of efficiency.",
    "It is found that local services are in general excessive from the capitalization standpoint.",
    "Application of the analysis to the recently introduced local government reforms suggest small effects on the overall level of spending.",
    "Method: Use capitalization of local spending in house prices as a test of efficiency.",
    "Result: Local services are in general excessive when evaluated by capitalization in house prices.",
    "Significant determinants identified:",
    "Application of the estimated determinants and efficiency analysis to recently introduced local government reforms suggests:",
    "Subject: Expenditure, Housing, Housing prices, Income, Labor, National accounts, Prices",
    "Keywords: authorities rise, benefit principle, government grant, Housing, Housing prices, Income, local authority expenditure, local government, property tax, spending authorities, tax price, thatcher government, United Kingdom government, WP"
  ],
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