Private demands for public capital: evidence from school bond referenda
AbstractThis paper develops a framework for estimating demand for school infrastructure investment that is financed through local bond referenda. Our framework takes explicit account of the irregular and discrete nature of local capital investment and the objective functions of local school boards. Our empirical model consists of a three-equation system composed of a proposed spending equation, a vote equation, and a selection equation. Estimated income and price elasticities of demand for school infrastructure are similar to those found in studies of current school spending. We also find that school boards act like risk-averse, budget-maximizing agenda-setters.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Urban Economics.
Volume (Year): 54 (2003)
Issue (Month): 3 (November)
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Web page: http://www.elsevier.com/locate/inca/622905
Other versions of this item:
- Ed Balsdon & Eric Brunner & Kim Rueben, 2003. "Private Demands for Public Capital: Evidence from School Bond Referenda," Working Papers 0009, San Diego State University, Department of Economics.
- H40 - Public Economics - - Publicly Provided Goods - - - General
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
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