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Demand for Local Public Schooling: Another Brick in the Wall

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  • Ahlin, A.
  • Johansson, E.

Abstract

In this paper we investigate the demand for local public school expenditures in Sweden. By using survey data, a method previously never applied to Swedish data, the paper provides an additional piece of evidence on individual demand for publicly provided local services. Estimating a linear demand specification, we find that the demand is inelastic with respect to income and tax, much in line with previous Swedish findings in a median voter framework. Estimation of a log-linear demand specification indicates more elastic demand. Testing the hypothesis that municipal employees tend to have a higher demand for public spending than others, we conclude that income, as well as taxprice, enters the demand function differently for the two groups of employees. We find no evidence of Tiebout sorting.

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Bibliographic Info

Paper provided by Uppsala - Working Paper Series in its series Papers with number 2000:120.

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Length: 33 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:uppaal:2000:120

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Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Keywords: PUBLIC SCHOOLS ; EXPENDITURES ; PUBLIC EMPLOYEES;

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References

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  1. Bergstrom, Theodore C & Rubinfeld, Daniel L & Shapiro, Perry, 1982. "Micro-Based Estimates of Demand Functions for Local School Expenditures," Econometrica, Econometric Society, Econometric Society, vol. 50(5), pages 1183-1205, September.
  2. Bergström, Pål & Dahlberg, Matz & Johansson, Eva, 1998. "Municipal Labour Demand - Sweden 1988 - 1995," Working Paper Series, Uppsala University, Department of Economics 1998:24, Uppsala University, Department of Economics.
  3. Shapiro, P. & Papadakis, E., 1991. "Citizen Preferences and Public Education in Australia: An Analysis of Interstate Diffrences," CEPR Discussion Papers 252, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  4. Courant, Paul N & Gramlich, Edward M & Rubinfeld, Daniel L, 1979. "Public Employee Market Power and the Level of Government Spending," American Economic Review, American Economic Association, vol. 69(5), pages 806-17, December.
  5. Hausman, Jerry A., 1980. "The effect of wages, taxes, and fixed costs on women's labor force participation," Journal of Public Economics, Elsevier, vol. 14(2), pages 161-194, October.
  6. Ted Bergstrom & Judy Roberts & Dan Rubinfeld & Perry Shapiro, 1988. "A Test for Efficiency in the Supply of Local Public Education," Papers _036, University of Michigan, Department of Economics.
  7. Aronsson, Thomas & Wikstrom, Magnus, 1996. "Local public expenditure in Sweden a model where the median voter is not necessarily decisive," European Economic Review, Elsevier, vol. 40(9), pages 1705-1716, December.
  8. Rubinfeld, Daniel L. & Shapiro, Perry, 1989. "Micro-estimation of the demand for schooling : Evidence from Michigan and Massachusetts," Regional Science and Urban Economics, Elsevier, vol. 19(3), pages 381-398, August.
  9. Edward M. Gramlich & Daniel L. Rubinfeld, 1982. "Voting on public spending: Differences between public employees, transfer recipients, and private workers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 1(4), pages 516-533.
  10. Bergstrom, Theodore C. & Roberts, Judith A. & Rubinfeld, Daniel L. & Shapiro, Perry, 1988. "A test for efficiency in the supply of public education," Journal of Public Economics, Elsevier, vol. 35(3), pages 289-307, April.
  11. Schokkaert, Erik, 1987. "Preferences and demand for local public spending," Journal of Public Economics, Elsevier, vol. 34(2), pages 175-188, November.
  12. Rubinfeld, Daniel L & Shapiro, Perry & Roberts, Judith, 1987. "Tiebout Bias and the Demand for Local Public Schooling," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 426-37, August.
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Cited by:
  1. Åsa Ahlin & Eva Johansson, 2001. "Individual Demand for Local Public Schooling: Evidence from Swedish Survey Data," International Tax and Public Finance, Springer, vol. 8(4), pages 331-351, August.
  2. Ahlin, Ã…sa, 2003. "Does School Competition Matter? Effects of a Large-Scale School Choice Reform on Student Performance," Working Paper Series, Uppsala University, Department of Economics 2003:2, Uppsala University, Department of Economics.

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