This article decomposes the rise in the cross-sectional variance of male annual earnings in Sweden between 1991 and 1999 into its persistent and transitory components. The results show that the persistent component accounts for basically all of the increase in earnings dispersion. This implies...

This paper examines the dynamic relationship between local government revenues and expenditures in Sweden. Results from a panel of 265 municipalities covered over the time period 1974-87 show that (i) expenditures cause revenues, while revenues do not cause expenditures, (ii) intergovernmental...