OECD Economics Department Working Papers

1815-1973 (online)
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

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Enhancing Expenditure Control with a Decentralised Public Sector in Denmark You or your institution have access to this content

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Steen Daugaard
08 Feb 2002
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This paper analyses of some the key aspects of public expenditure policy in Denmark. The public expenditure to GDP ratio has abated markedly since the mid-1990s, reflecting both cyclical gains and the return on structural reforms. Nevertheless, the underlying upward pressure on government spending, notably from the demand for personal services, is generally perceived to be significant and expected to persist. The origins of such pressure, as well as means of containing it in the future, are discussed. With public consumption being very high by international standards, the paper advocates greater competition in the provision of services to individuals and more reliance on market signals such as client choice and user charges to enhance the efficiency of resource allocation. A particular feature of the Danish public sector is the fact that counties and municipalities have been assigned a wider range of responsibilities than in any other OECD country as well as extensive taxing ...

expenditure policy, Denmark, inter-governmental relations
JEL Classification:
  • E62: Macroeconomics and Monetary Economics / Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook / Fiscal Policy
  • H11: Public Economics / Structure and Scope of Government / Structure, Scope, and Performance of Government
  • H42: Public Economics / Publicly Provided Goods / Publicly Provided Private Goods
  • H50: Public Economics / National Government Expenditures and Related Policies / General
  • H51: Public Economics / National Government Expenditures and Related Policies / Government Expenditures and Health
  • H52: Public Economics / National Government Expenditures and Related Policies / Government Expenditures and Education
  • H53: Public Economics / National Government Expenditures and Related Policies / Government Expenditures and Welfare Programs
  • H77: Public Economics / State and Local Government ; Intergovernmental Relations / Intergovernmental Relations ; Federalism ; Secession
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