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The influence of population size on the relevance of demand or supply models for local public goods: Evidence from France

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  • Jean‐Michel Josselin
  • Yvon Rocaboy
  • Christophe Tavéra

Abstract

The relevance of models explaining local public expenditure behaviour may depend upon the size of the population of municipalities. To refine this intuition, the paper puts two alternative specifications in competition, one from the demand side and the other from the supply side. The data set includes 14,900 French municipalities for 1998. The econometric methodology uses a data‐sorting method developed to test whether the responsiveness of local governments to voters is stable across small‐size and large‐size municipalities. It appears that the median‐voter model is rejected for the 1,579 municipalities with more than 5,000 inhabitants, for which a supply‐driven model fits better. Resumen La relevancia de modelos que expliquen el desembolso público local podría depender del tamaño de la población de municipalidades. Para refinar esta intuición, el artículo establece una comparación entre dos especificaciones alternativas, una del lado de la demanda y otra del lado de la oferta. El conjunto de datos incluye 14,900 municipalidades francesas para 1998. La metodología econométrica utiliza un método de ordenación de datos desarrollado para evaluar si la respuesta de los gobiernos locales a los votantes es estable para municipalidades de pequeño y gran tamaño. Parece que el modelo de votante‐mediano es rechazado para las 1,579 municipalidades con más de 5,000 habitantes, para las cuales ajusta mejor un modelo impulsado por la oferta.

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  • Jean‐Michel Josselin & Yvon Rocaboy & Christophe Tavéra, 2009. "The influence of population size on the relevance of demand or supply models for local public goods: Evidence from France," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 563-574, August.
  • Handle: RePEc:bla:presci:v:88:y:2009:i:3:p:563-574
    DOI: 10.1111/j.1435-5957.2008.00210.x
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    2. Torben Dall Schmidt & Aki Kangasharju & Timo Mitze & Daniel Rauhut, 2014. "The impact of aging on regional employment: Linking spatial econometrics and population projections for a scenario analysis of future labor market outcomes in Nordic regions," Economics and Business Letters, Oviedo University Press, vol. 3(4), pages 232-246.
    3. Benoît LE MAUX & Kristýna DOSTÁLOVÁ & Antti MOISIO, 2017. "Do political parties matter? Endogenous fragmentation, partisanship, and local public expenditures in Finland," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-02-ccr, Condorcet Center for political Economy.
    4. Guy Gilbert & Alain Guengant & Benoît Le Maux & Yvon Rocaboy, 2012. "Une étude économétrique de la dépense publique locale: Le cas des départements français," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201203, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

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