The study focuses on the challenges of the ageing population in Finnish public policies related to municipal structures and finances. First, we review how the impacts of the ageing population have been identified and how necessary policy responses and reforms of the municipal division in particular have been prioritised by recent central governments. Second, we evaluate how state grant policy has equalised the financial capabilities ofmunicipalities to cope with the financial consequences of the ageing population. Our findings indicate that ageing is believed to increase municipal expenditures because the demand for care services in particular is growing. The analysis also demonstrates that the state grant system is capable of substantially equalising the differences in tax bases and spending obligations between municipalities. Nevertheless, central governments have planned ‘big-bang reform proposals’, introducing a completely new tier of democratic government and regionalising the most burdensome welfare services of municipalities.

This paper considers the causes and consequences of the crisis in the public finances of EU member states and other countries. It critically appraises the proposed ‘cures’ and whether they are likely to be successful by analysing ‘structural gaps’ in the public finances. The paper theorizes the multifaceted causes of the crisis—these being financial, political, institutional, economic and cultural. It concludes that the proposed cures will not necessarily close structural gaps and that a sustainable long-term strategy for the public finances has to be much more holistic, creating symmetry between decisions to spend and liability to finance those decisions.

Purpose: The purpose of this paper is to discuss the rationale and functioning of the partnership-based brokerage model as a vehicle of service integration with special reference to its support for information intermediation, learning and service market creation.Design/methodology/approach: The theoretical framework is built on the tension between New Public Management (NPM) and post-NPM thinking, which frames the analysis of the brokerage model for elderly care services in the city of Tampere, Finland. The empirical data are derived from interviews, evaluation reports and existing case descriptions.Findings: In the Kotitori model, the broker enhances the capacity building of the city government and the cost-effectiveness of its service provision, provides added value through improved information processes and handles matters relating to subcontracting and the facilitation of the service provider network. The model as a whole reflects the hybridisation of public administration. Even if Kotitori contains many NPM-inspired elements, they are complemented by features derived from New Public Governance and the neo-Weberian local state. The most neglected aspect of post-NPM thinking in the design of Kotitori is citizen centredness.Originality/value: This paper broadens the perspective on the role of brokers in public service provision and highlights the multi-dimensionality of the brokerage function. It also shows how such partnership-based brokerage model reflects various aspects of both NPM and post-NPM paradigm.

This paper analyses the voucher concept. It considers different types of vouchers in the public and private sectors, distinguishes between explicit and implicit vouchers, and develops both a general model and a local government model of vouchers. It also reviews arguments for and against vouchers, considers the characteristics and dimensions of vouchers and identifies the rights and responsibilities attached to their use. Based on this comprehensive analysis, it develops a new definition of public service vouchers incorporating exit and voice. The analysis also provides a schema that can be used to design, modify and evaluate individual voucher systems.

This paper argues that justifying lack of productivity improvements in public services by referring to Baumol’s Cost Disease (BCD) is conceptually confused, theoretically misspecified and empirically blind. BCD misconceptualizes public services as categorically distinct from manufactured goods and is based on a theory of productivity not directly applicable to many public services, therefore failing to recognize evidence of substantial scope for improving public services’ productivity. Analysis of the structural and behavioural unbundling of value creation and decomposition of professional skills in service provision leads this paper to conclude that public services are not as technologically non-progressive as BCD asserts.