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Individual demand for local public schooling: Evidence from Swedish survey data

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Author Info
Ahlin, Åsa (IFAU - Office of Labour Market Policy Evaluation)
Johansson, Eva () (IFAU - Office of Labour Market Policy Evaluation)

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Abstract

In this paper we investigate the demand for local public school expenditures in Sweden using survey data, a method previously never applied to Swedish data. We compare our results to those of earlier US studies, where the same method is used in a different institutional setup. Estimating a linear demand specifica-tion, we find that demand is inelastic with respect to income and taxprice, much in line with previous Swedish findings in a median voter framework. Es-timation of a log-linear demand specification indicates that the elasticities of demand for schooling are higher in Sweden than in the US. Testing the hy-pothesis that municipal employees tend to have a higher demand for public spending than others, we conclude that income, as well as taxprice and grants, enters the demand function differently for the two groups of employees.

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Publisher Info
Paper provided by IFAU - Institute for Labour Market Policy Evaluation in its series Working Paper Series with number 2001:1.

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Length: 34 pages
Date of creation: 19 Feb 2001
Date of revision:
Publication status: Published in International Tax and Public Finance, 2001, pages 331-351.
Handle: RePEc:hhs:ifauwp:2001_001

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Related research
Keywords: individual demand; local public schooling; survey data; public employees;

Other versions of this item:

Find related papers by JEL classification:
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
H40 - Public Economics - - Publicly Provided Goods - - - General
H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. Filimon, Radu & Romer, Thomas & Rosenthal, Howard, 1982. "Asymmetric information and agenda control : The bases of monopoly power in public spending," Journal of Public Economics, Elsevier, vol. 17(1), pages 51-70, February. [Downloadable!] (restricted)
  3. Ted Bergstrom & Daniel Rubinfeld & Perry Shapiro, 1982. "Micro-Based Estimatesof Demand Functions for Local School Expenditures," University of California at Santa Barbara, Economics Working Paper Series 1982B, Department of Economics, UC Santa Barbara. [Downloadable!]
    Other versions:
  4. Ahlin, A. & Johansson, E., 2000. "Demand for Local Public Schooling: Another Brick in the Wall," Papers 2000:120, Uppsala - Working Paper Series.
    Other versions:
  5. Dahlberg, M. & Jacob, J., 2000. "Sluggishness, Endogeneity and the Demand for Local Public Services," Papers 2000-17, Uppsala - Working Paper Series.
    Other versions:
  6. Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-60, June. [Downloadable!] (restricted)
  7. Shapiro, Perry & Papadakis, Elim, 1993. "Citizen Preference and Public Education in Australia: An Analysis of Interstate Differences," The Economic Record, The Economic Society of Australia, vol. 69(205), pages 149-62, June.
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  8. 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. [Downloadable!] (restricted)
  9. Rongen, Gunnar, 1995. "Efficiency in the provision of local public goods in Norway," European Journal of Political Economy, Elsevier, vol. 11(2), pages 253-264, June. [Downloadable!] (restricted)
  10. Schokkaert, Erik, 1987. "Preferences and demand for local public spending," Journal of Public Economics, Elsevier, vol. 34(2), pages 175-188, November. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
  12. Bergstrom, P. & Dahlberg, M. & Johansson, E., 1998. "Municipal Labour Demand. Sweden 1988-1995," Papers 1998:24, Uppsala - Working Paper Series.
    Other versions:
  13. 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. [Downloadable!]
  14. Bradford, David F & Oates, Wallace E, 1971. "An Analysis of Revenue Sharing in a New Approach to Collective Fiscal Decisions," The Quarterly Journal of Economics, MIT Press, vol. 85(3), pages 416-39, August. [Downloadable!] (restricted)
  15. 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. [Downloadable!] (restricted)
  16. 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. [Downloadable!] (restricted)
  17. Ian Preston & Michael Ridge, 1993. "Demand for local public spending," IFS Working Papers W93/16, Institute for Fiscal Studies.
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ahlin, Åsa & Mörk, Eva, 2005. "Effects of decentralization on school resources," Working Paper Series 2005:5, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
    Other versions:
  2. Dahlberg, Matz & Mörk, Eva & Ågren, Hanna, 2004. "Do Politicians’ Preferences Correspond to those of the Voters? An Investigation of Political Representation," Working Paper Series 2004:2, Uppsala University, Department of Economics. [Downloadable!]
    Other versions:
  3. Gebremariam, Gebremeskel & Gebremedhin, Tesfa, 2006. "County-Level Determinants of Local Public Services in Appalachia: A Multivariate Spatial Autoregressive Model Approach," 2006 Annual meeting, July 23-26, Long Beach, CA 21375, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Dahlberg, Matz & Fredriksson, Peter, 2001. "Migration and Local Public Services," Working Paper Series 2001:12, Uppsala University, Department of Economics. [Downloadable!]
    Other versions:
  5. Ismael Sanz & Francisco Javier Velázquez, 2002. "Determinants of the Composition of Government Expenditure by Functions," European Economy Group Working Papers 13, European Economy Group. [Downloadable!]
  6. Svaleryd, Helena, 2002. "Femal Representation - Is it Important for Policy Decisions?," Research Papers in Economics 2002:7, Stockholm University, Department of Economics. [Downloadable!]
  7. Catalina Gutiérrez & Ryuichi Tanaka, 2009. "Inequality and education decisions in developing countries," Journal of Economic Inequality, Springer, vol. 7(1), pages 55-81, March. [Downloadable!] (restricted)
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