1887

OECD Economics Department Working Papers

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.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Enhancing Expenditure Control with a Decentralised Public Sector in Denmark

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 ...

English

Keywords: expenditure policy, Denmark, inter-governmental relations
JEL: H42: Public Economics / Publicly Provided Goods / Publicly Provided Private Goods; H51: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Health; H52: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Education; H11: Public Economics / Structure and Scope of Government / Structure, Scope, and Performance of Government; H77: Public Economics / State and Local Government; Intergovernmental Relations / Intergovernmental Relations; Federalism; Secession; H53: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Welfare Programs; H50: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Related Policies: General; E62: Macroeconomics and Monetary Economics / Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook / Fiscal Policy
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error