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Per-capita public expenditures and population size: a non-parametric analysis using French data

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  • Robert Breunig

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  • Yvon Rocaboy

    ()

Abstract

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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Suggested Citation

  • Robert Breunig & Yvon Rocaboy, 2008. "Per-capita public expenditures and population size: a non-parametric analysis using French data," Public Choice, Springer, vol. 136(3), pages 429-445, September.
  • Handle: RePEc:kap:pubcho:v:136:y:2008:i:3:p:429-445
    DOI: 10.1007/s11127-008-9304-z
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    References listed on IDEAS

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    1. Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, vol. 63(3), pages 280-296, June.
    2. 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.
    3. Holcombe, Randall G & Sobel, Russell S, 1995. "Empirical Evidence on the Publicness of State Legislative Activities," Public Choice, Springer, vol. 83(1-2), pages 47-58, April.
    4. 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 523-534, November.
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    Citations

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    Cited by:

    1. Quentin Frère & Hakim Hammadou & Sonia Paty, 2011. "The range of local public services and population size: Is there a “zoo effect” in French jurisdictions?," Recherches économiques de Louvain, De Boeck Université, vol. 77(2), pages 87-104.
    2. Reingewertz, Yaniv, 2014. "Fiscal Decentralization - a Survey of the Empirical Literature," MPRA Paper 59889, University Library of Munich, Germany.
    3. Dino Rizzi & Michele Zanette, 2015. "A Procedure for the Ex-Ante Assessment of Compulsory Municipal Amalgamation Programs," Working Papers 2015:22, Department of Economics, University of Venice "Ca' Foscari".
    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.
    5. Reingewertz, Yaniv, 2012. "Do municipal amalgamations work? Evidence from municipalities in Israel," Journal of Urban Economics, Elsevier, vol. 72(2), pages 240-251.
    6. Benoît Maux & Yvon Rocaboy & Timothy Goodspeed, 2011. "Political fragmentation, party ideology and public expenditures," Public Choice, Springer, vol. 147(1), pages 43-67, April.

    More about this item

    Keywords

    Local Public Economics; Semi-parametric econometrics; Congestion; C14; H4; H7; R51;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H4 - Public Economics - - Publicly Provided Goods
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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