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THE NEW SYSTEM OF LOCAL TAXATION IN SCOTLAND: PRINCIPLES AND PRACTICE
Author(s) -
MIDWINTER ARTHUR,
MONAGHAN CLAIRE
Publication year - 1991
Publication title -
public administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.313
H-Index - 93
eISSN - 1467-9299
pISSN - 0033-3298
DOI - 10.1111/j.1467-9299.1991.tb00798.x
Subject(s) - economics , accountability , public economics , local government , government (linguistics) , process (computing) , marginal cost , skew , empirical evidence , distribution (mathematics) , macroeconomics , microeconomics , public administration , political science , law , computer science , telecommunications , mathematical analysis , linguistics , philosophy , mathematics , epistemology , operating system
This article examines the new system of Scottish local government finance in theory and practice. It argues that reform is based on an economic theory of local fiscal behaviour, and examines the empirical evidence regarding the application of marginal cost pricing principles through the linking of marginal spending to taxation. The research reveals that the application of such principles in practice will be difficult, as only a few services offer direct benefits to all individuals, and as yet the technical precision needed in assessing needs for grant distribution has not materialized. There is little evidence of any impact of financial reform on local expenditure, as a number of intervening variables and assumptions can skew the accountability process.