Per-capita public expenditures and population size: a non-parametric analysis using French data
Based on the median voter model, we specify a flexible general framework of the effect of municipality size on per-capita public expenditures. Previous literature has recognized that municipality size should have a non-linear effect on the quality of public goods provision and to this end different papers have applied a range of alternative parametric specifications. Using a very large sample of French “communes” we are able to estimate the effect of municipality size semi-parametrically. In contrast with the parametric specifications, we find evidence of the U-shaped relationship between per-capita public expenditures and population which is predicted by theory.
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- Holcombe, Randall G & Sobel, Russell S, 1995.
"Empirical Evidence on the Publicness of State Legislative Activities,"
Springer, vol. 83(1-2), pages 47-58, April.
- Holcombe, R.G. & Sobel, R.S., 1993. "Empirical Evidence on the Publicness of State Legislative Activities," Working Papers 1993_05_03, Department of Economics, Florida State University.
- Melville L. McMillan & W. Robert Wilson & Louise M. Arthur, 1981. "The Publicness of Local Public Goods: Evidence from Ontario Municipalities," Canadian Journal of Economics, Canadian Economics Association, vol. 14(4), pages 596-608, November.
- Gonzalez, R A & Means, T S & Mehay, S L, 1993. "Empirical Tests of the Samuelsonian Publicness Parameter: Has the Right Hypothesis Been Tested?," Public Choice, Springer, vol. 77(3), pages 523-34, November.
- 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.
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