Decentralization of authority from central government to sub-national gover
nments is an important part of modern public sector reforms and has been th
e primary contribution to public sector reform in Denmark and the other Nor
dic countries. On the assumption that political and administrative actors a
re authority maximizers, the paper analyses how national and sub-national a
ctors react to these decentralization goals, and the extent to which they a
re implemented. The analysis points to the importance of both institutional
and power variables. It concludes that dynamic change can take place in a
public sector which is characterized by strong corporatist and multi-level
institutions, such as in Denmark.