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The Demand for Local Public Goods: The Case of Public School Quality

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  • David M. Brasington

    (Tulane University)

Abstract

The demand for public school quality is estimated. Unlike previous studies, the price of a unit of public school quality in the demand estimation is measured by both the tax price and the implicit price calculated from a house price hedonic. Identification, endogeneity, and Tiebout bias are addressed. The tax price elasticity of the demand for public schooling is -.17; the implicit price elasticity of demand is -.11. Both estimates are more inelastic than previously reported elasticities. The income elasticity of demand is .32. The positive relationship between constant-quality house price and public school quality is confirmed.

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Bibliographic Info

Article provided by in its journal Public Finance Review.

Volume (Year): 30 (2002)
Issue (Month): 3 (May)
Pages: 163-187

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Handle: RePEc:sae:pubfin:v:30:y:2002:i:3:p:163-187

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Cited by:
  1. John Yinger, 2009. "Hedonic Markets and Explicit Demands: Bid-Function Envelopes for Public Services, Neighborhood Amenities, and Commuting Costs," Center for Policy Research Working Papers, Center for Policy Research, Maxwell School, Syracuse University 114, Center for Policy Research, Maxwell School, Syracuse University.
  2. Stadelmann, David, 2010. "Which factors capitalize into house prices? A Bayesian averaging approach," Journal of Housing Economics, Elsevier, Elsevier, vol. 19(3), pages 180-204, September.
  3. David Brasington & Donald R. Haurin, 2006. "Educational Outcomes and House Values: A Test of the value added Approach," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 46(2), pages 245-268.
  4. David Brasington & Don Haurin, . "The Demand for Educational Quality: Comparing Estimates from a Median Voter Model with those from an Almost Ideal Demand System," Departmental Working Papers, Department of Economics, Louisiana State University 2005-16, Department of Economics, Louisiana State University.
  5. David Brasington & D. Hite, . "Demand for Environmental Quality: A Spatial Hedonic Analysis," Departmental Working Papers, Department of Economics, Louisiana State University 2003-02, Department of Economics, Louisiana State University.
  6. David Brasington & Don Haurin, . "Capitalization of Parent, School, and Peer Group Components of School Quality into House Price," Departmental Working Papers, Department of Economics, Louisiana State University 2005-04, Department of Economics, Louisiana State University.
  7. Noel D. Campbell & Andres Jauregui & Kirk C. Heriot, 2008. "Housing Prices and Economic Freedom," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 23(Spring 20), pages 1-17.
  8. David M. Brasington, . "School Choice and the Flight to Private Schools: To What Extent Are Public and Private Schools Substitutes?," Departmental Working Papers, Department of Economics, Louisiana State University 2006-04, Department of Economics, Louisiana State University.
  9. Brasington, David M. & Haurin, Donald R., 2009. "Parents, peers, or school inputs: Which components of school outcomes are capitalized into house value?," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 39(5), pages 523-529, September.

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