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

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  • Ahlin, Åsa

    (IFAU - Office of Labour Market Policy Evaluation)

  • Johansson, Eva

    ()
    (IFAU - Office of Labour Market Policy Evaluation)

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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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy 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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Keywords: individual demand; local public schooling; survey data; public employees;

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References

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  1. 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.
  2. 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.
  3. Dahlberg, M. & Jacob, J., 2000. "Sluggishness, Endogeneity and the Demand for Local Public Services," Papers 2000:17, Uppsala - Working Paper Series.
  4. 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.
  5. Bergstrom, P. & Dahlberg, M. & Johansson, E., 1998. "Municipal Labour Demand. Sweden 1988-1995," Papers 1998:24, Uppsala - Working Paper Series.
  6. 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.
  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. 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.
  9. 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.
  10. Ahlin, A. & Johansson, E., 2000. "Demand for Local Public Schooling: Another Brick in the Wall," Papers 2000:12, Uppsala - Working Paper Series.
  11. 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.
  12. Ian Preston & Michael Ridge, 1993. "Demand for local public spending," IFS Working Papers W93/16, Institute for Fiscal Studies.
  13. 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.
  14. Schokkaert, Erik, 1987. "Preferences and demand for local public spending," Journal of Public Economics, Elsevier, vol. 34(2), pages 175-188, November.
  15. 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.
  16. 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.
  17. Bergstrom, Theodore C & Rubinfeld, Daniel L & Shapiro, Perry, 1982. "Micro-Based Estimates of Demand Functions for Local School Expenditures," Econometrica, Econometric Society, vol. 50(5), pages 1183-1205, September.
  18. 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.
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Citations

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Cited by:
  1. Gebremariam, Gebremeskel H. & Gebremedhin, Tesfa G., 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).
  2. Ahlin, Åsa & Mörk, Eva, 2008. "Effects of decentralization on school resources," Economics of Education Review, Elsevier, vol. 27(3), pages 276-284, June.
  3. Catalina Gutiérrez & Ryuichi Tanaka, 2009. "Inequality and education decisions in developing countries," Journal of Economic Inequality, Springer, vol. 7(1), pages 55-81, March.
  4. Gebremariam, Gebremeskel H. & Gebremedhin, Tesfa G. & Schaeffer, Peter V. & Phipps, Tim T. & Jackson, Randall W., 2007. "A Spatial Panel Simultaneous-Equations Model of Business Growth, Migration Behavior, Local Public Services and Household Income in Appalachia," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9895, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Jakobsson, Niklas, 2009. "Why do you want lower taxes? Preferences regarding municipal income tax rates," Working Papers in Economics 345, University of Gothenburg, Department of Economics.
  6. Bergstrom, Pal & Dahlberg, Matz & Mork, Eva, 2004. "The effects of grants and wages on municipal labour demand," Labour Economics, Elsevier, vol. 11(3), pages 315-334, June.
  7. Ismael Sanz & Francisco Javier Velázquez, 2002. "Determinants of the Composition of Government Expenditure by Functions," European Economy Group Working Papers 13, European Economy Group.
  8. Svaleryd, Helena, 2002. "Femal Representation - Is it Important for Policy Decisions?," Research Papers in Economics 2002:7, Stockholm University, Department of Economics.
  9. Hanna Ågren & Matz Dahlberg & Eva Mörk, 2007. "Do politicians’ preferences correspond to those of the voters? An investigation of political representation," Public Choice, Springer, vol. 130(1), pages 137-162, January.
  10. Maria da Conceição Sampaio e Sousa, 2011. "Locally Provided Public Schooling in Brazilian Municipalities," Economia, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 12(3), pages 427_444.
  11. Dahlberg, M. & Fredriksson, P., 2001. "Migration and Local Public Services," Papers 2001-12, Uppsala - Working Paper Series.
  12. Tonin, Mirco & Vlassopoulos, Michael, 2014. "Are Public Sector Workers Different? Cross-European Evidence from Elderly Workers and Retirees," IZA Discussion Papers 8238, Institute for the Study of Labor (IZA).
  13. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer, 2012. "County-level determinants of local public services in Appalachia: a multivariate spatial autoregressive model approach," The Annals of Regional Science, Springer, vol. 49(1), pages 175-190, August.
  14. Dahlberg, Matz & Mörk, Eva & Sorribas Navarro, Pilar, 2011. "Do Politicians’ Preferences Matter for Voters’ Voting Decisions?," Working Paper Series, Center for Fiscal Studies 2011:5, Uppsala University, Department of Economics.

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