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Alternative Local Public Education Expenditure Functions: An Econometric Evaluation

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  • Geoffrey K. Turnbull

Abstract

This article presents a formal econometric evaluation of competing median voter public education demand specifications. The Cox specification test is used to determine the appropriate role for intergovernmental aid and the appropriate tax share definition in the empirical models. Tests of the aid specification yield support for the popular notion that allowing for different voter income and aid elasticities is superior to treating aid as a supplement to voter income. Tests of the tax share definition indicate that the partial tax exporting tax share is superior to the complete and zero exporting tax shares examined. The results also indicate that the present theoretical models need to be extended to provide a greater role for the mix of nonresidential property in determining community fiscal behavior.

Suggested Citation

  • Geoffrey K. Turnbull, 1987. "Alternative Local Public Education Expenditure Functions: An Econometric Evaluation," Public Finance Review, , vol. 15(1), pages 45-60, January.
  • Handle: RePEc:sae:pubfin:v:15:y:1987:i:1:p:45-60
    DOI: 10.1177/109114218701500103
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    References listed on IDEAS

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    1. Pesaran, M H & Deaton, Angus S, 1978. "Testing Non-Nested Nonlinear Regression Models," Econometrica, Econometric Society, vol. 46(3), pages 677-694, May.
    2. M. H. Pesaran, 1974. "On the General Problem of Model Selection," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(2), pages 153-171.
    3. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
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    Cited by:

    1. José Manuel Cruz, 2004. "Empirical analysis of the influence of voters and politicians in the public choice of Portuguese municipalities universidade portucalense," ERSA conference papers ersa04p367, European Regional Science Association.

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