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Interrelationships among public spending preferences: A micro analysis

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  • James Ferris

Abstract

This paper examines a system of qualitative demand equations for public spending on education, welfare, housing, health, highways, and defense. The demand for public spending for a particular category is hypothesized to be a function of income, tax-price, private benefit measures, and tastes as well as demands for other public expenditure categories. Based on individual survey data, the conditional maximum likelihood estimates of the logit equations are obtained. The results indicate the significant role of tastes, private benefit variables, and tax-prices. In addition, positive rather than negative, demand interrelationships are found to exist. These findings question the validity of the median voter hypothesis as a model for public budget allocation. Copyright Martinus Nijhoff Publishers 1985

Suggested Citation

  • James Ferris, 1985. "Interrelationships among public spending preferences: A micro analysis," Public Choice, Springer, vol. 45(2), pages 139-153, January.
    • Handle: RePEc:kap:pubcho:v:45:y:1985:i:2:p:139-153
    DOI: 10.1007/BF00215061
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    References listed on IDEAS

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    1. Schmidt, Peter & Strauss, Robert P, 1975. "Estimation of Models with Jointly Dependent Qualitative Variables: A Simultaneous Logit Approach," Econometrica, Econometric Society, vol. 43(4), pages 745-755, July.
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    1. Elnagheeb, Abdelmoneim H. & Jordan, Jeffrey L. & Humphrey, Vonda, 1995. "The Structure Of Farmers' Perceptions Of Ground Water Pollution," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(1), pages 1-14, July.
    2. Mahoney, Michelle S. & Kemp, Simon & Webley, Paul, 2005. "Factors in lay preferences for government or private supply of services," Journal of Economic Psychology, Elsevier, vol. 26(1), pages 73-87, February.
    3. Yamamura, Eiji, 2014. "Time preference and perceptions about government spending and tax: Smokers’ dependence on government support," MPRA Paper 55659, University Library of Munich, Germany.

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