Private Demands for Public Capital: Evidence from School Bond Referenda
AbstractThis paper develops a framework for estimating demand for school infrastructure investment that is financed through local bond referenda. Our framework takes explicit account of the irregular and discrete nature of local capital investment and the objective functions of local school boards. Our empirical model consists of a three-equation system composed of a proposed spending equation, a vote equation, and a selection equation. Estimated income and price elasticities of demand for school infrastructure are similar to those found in studies of current school spending. We also find that school boards act like risk-averse, budget-maximizing agenda-setters.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by San Diego State University, Department of Economics in its series Working Papers with number 0009.
Length: 36 pages
Date of creation: Jan 2003
Date of revision:
Contact details of provider:
Postal: 5500 Campanile Drive, San Diego, CA 92182-4485
Phone: (619) 594-1675
Fax: (619) 594-5062
Web page: http://www-rohan.sdsu.edu/dept/econ/e1.html
More information through EDIRC
School Infrastructure Investment; Agenda Setting;
Other versions of this item:
- Balsdon, Ed & Brunner, Eric J. & Rueben, Kim, 2003. "Private demands for public capital: evidence from school bond referenda," Journal of Urban Economics, Elsevier, vol. 54(3), pages 610-638, November.
- H40 - Public Economics - - Publicly Provided Goods - - - General
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
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.:
- Romer, Thomas & Rosenthal, Howard, 1982. "Median Voters or Budget Maximizers: Evidence from School Expenditure Referenda," Economic Inquiry, Western Economic Association International, vol. 20(4), pages 556-78, October.
- Daniel Ingberman, 1985. "Running against the status quo: Institutions for direct democracy referenda and allocations over time," Public Choice, Springer, vol. 46(1), pages 19-43, January.
- Brueckner, Jan K. & Joo, Man-Soo, 1991. "Voting with capitalization," Regional Science and Urban Economics, Elsevier, vol. 21(3), pages 453-467, November.
- Robert Inman, 1978. "Testing political economy’s ‘as if’ proposition: is the median income voter really decisive?," Public Choice, Springer, vol. 33(4), pages 45-65, December.
- Epple, Dennis & Zelenitz, Allan, 1981. "The Implications of Competition among Jurisdictions: Does Tiebout Need Politics?," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1197-1217, December.
- Poterba, James M. & Rueben, Kim S., 2001. "Fiscal News, State Budget Rules, and Tax-Exempt Bond Yields," Journal of Urban Economics, Elsevier, vol. 50(3), pages 537-562, November.
- Reid, Gary J., 1990. "The many faces of Tiebout bias in local education demand parameter estimates," Journal of Urban Economics, Elsevier, vol. 27(2), pages 232-254, March.
- Sprunger, Philip & Wilson, John Douglas, 1998. "Imperfectly Mobile Households and Durable Local Public Goods: Does the Capitalization Mechanism Work?," Journal of Urban Economics, Elsevier, vol. 44(3), pages 468-492, November.
- Romer, Thomas & Rosenthal, Howard & Munley, Vincent G., 1992. "Economic incentives and political institutions: Spending and voting in school budget referenda," Journal of Public Economics, Elsevier, vol. 49(1), pages 1-33, October.
- Douglas Holtz-Eakin & Harvey S. Rosen, 1993. "Municipal Construction Spending: An Empirical Examination," Economics and Politics, Wiley Blackwell, vol. 5(1), pages 61-84, 03.
- Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, vol. 63(3), pages 280-96, June.
- 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.
- Holtz-Eakin, Douglas & Rosen, Harvey S., 1989.
"The `rationality' of municipal capital spending : Evidence from New Jersey,"
Regional Science and Urban Economics,
Elsevier, vol. 19(3), pages 517-536, August.
- Holtz-Eakin, D. & Rosen, H.S., 1989. "The Rationality Of Municipal Capital Spending: Evidence From New Jersey," Discussion Papers 1989_28, Columbia University, Department of Economics.
- Rosen, H.S. & Holtz-Eakin, D., 1988. "The "Rationality" Of Municipal Capital Spending: Evidency From New Jersey," Papers 33, Princeton, Woodrow Wilson School - Discussion Paper.
- Romer, Thomas & Rosenthal, Howard, 1979. "Bureaucrats versus Voters: On the Political Economy of Resource Allocation by Direct Democracy," The Quarterly Journal of Economics, MIT Press, vol. 93(4), pages 563-87, November.
- 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.
- Banks, J.S., 1990.
"Two-Sided Uncertainty In The Monopoly Agenda Setter Model,"
RCER Working Papers
215, University of Rochester - Center for Economic Research (RCER).
- Banks, Jeffrey S., 1993. "Two-sided uncertainty in the monopoly agenda setter model," Journal of Public Economics, Elsevier, vol. 50(3), pages 429-444, March.
- Holtz-Eakin, Douglas, 1993. "State-specific estimates of state and local government capital," Regional Science and Urban Economics, Elsevier, vol. 23(2), pages 185-209, April.
- 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.
- Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-43, December.
- Douglas Holtz-Eakin & Harvey S. Rosen, 1989. "Municipal Construction Spending: An Empirical Examination," NBER Working Papers 2989, National Bureau of Economic Research, Inc.
- Rothstein, Paul, 1994. "Learning the preferences of governments and voters from proposed spending and aggregated votes," Journal of Public Economics, Elsevier, vol. 54(3), pages 361-389, July.
- repec:fth:coluec:419 is not listed on IDEAS
- 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.
- Ed Balsdon, 2007. "Property Value Capitalization And Municipal Open Space Referenda," Working Papers 0019, San Diego State University, Department of Economics.
- Eric J. Brunner & Stephen L. Ross, 2007. "How Decisive Is the Decisive Voter?," Working papers 2007-28, University of Connecticut, Department of Economics, revised Aug 2008.
- Stephanie Riegg Cellini & Fernando Ferreira & Jesse Rothstein, 2008.
"The Value of School Facilities: Evidence from a Dynamic Regression Discontinuity Design,"
1101, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Stephanie Riegg Cellini & Fernando Ferreira & Jesse Rothstein, 2008. "The Value of School Facilities: Evidence from a Dynamic Regression Discontinuity Design," NBER Working Papers 14516, National Bureau of Economic Research, Inc.
- Joshua Hall, 2006. "Fiscal competition and tax instrument choice: the role of income inequality," Economics Bulletin, AccessEcon, vol. 8(12), pages 1-8.
- Eric J. Brunner & Stephen L. Ross, 2009. "Is the Median Voter Decisive? Evidence of 'Ends Against the Middle' From Referenda Voting Patterns," Working papers 2009-02, University of Connecticut, Department of Economics, revised May 2010.
- Wang, Wen & Duncombe, William D. & Yinger, John M., 2011. "School District Responses To Matching Aid Programs For Capital Facilities: A Case Study Of New York’S Building Aid Program," National Tax Journal, National Tax Association, vol. 64(3), pages 759-94, September.
- Stephen Coate, 2013. "Evaluating Durable Public Good Provision using Housing Prices," NBER Working Papers 18767, National Bureau of Economic Research, Inc.
- repec:ebl:ecbull:v:8:y:2006:i:12:p:1-8 is not listed on IDEAS
- Brunner, Eric J. & Ross, Stephen L., 2010. "Is the median voter decisive? Evidence from referenda voting patterns," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 898-910, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ginger Shoulders).
If references are entirely missing, you can add them using this form.