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Individual Demand for Local Public Schooling: Evidence from Swedish Survey Data

  • Åsa Ahlin


  • Eva Johansson


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 specification, we find that demand is inelastic with respect to income and taxprice, much in line with previous Swedish findings in a median voter framework. Estimation of a log-linear demand specification indicates that the elasticities of demand for schooling are higher in Sweden than in the US. 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 and grants, enters the demand function differently for the two groups of employees. Copyright Kluwer Academic Publishers 2001

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Article provided by Springer in its journal International Tax and Public Finance.

Volume (Year): 8 (2001)
Issue (Month): 4 (August)
Pages: 331-351

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Handle: RePEc:kap:itaxpf:v:8:y:2001:i:4:p:331-351
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  1. 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.
  2. 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.
  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. 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.
  5. 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.
  6. Ian Preston & Michael Ridge, 1993. "Demand for local public spending," IFS Working Papers W93/16, Institute for Fiscal Studies.
  7. 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.
  8. Dahlberg, M. & Jacob, J., 2000. "Sluggishness, Endogeneity and the Demand for Local Public Services," Papers 2000-17, Uppsala - Working Paper Series.
  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.
  10. Schokkaert, Erik, 1987. "Preferences and demand for local public spending," Journal of Public Economics, Elsevier, vol. 34(2), pages 175-188, November.
  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. Bergström, Pål & Dahlberg, Matz & Johansson, Eva, 1998. "Municipal Labour Demand - Sweden 1988 - 1995," Working Paper Series 1998:24, Uppsala University, Department of Economics.
  13. 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.
  14. 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.
  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. Ahlin, Åsa & Johansson, Eva, 2000. "Demand for Local Public Schooling: Another Brick in the Wall," Working Paper Series 2000:12, Uppsala University, Department of Economics.
  17. 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.
  18. 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.
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