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Public Characteristics and Expenditures on Public Services: an Empirical Analysis

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  • Amy Ellen Schwartz

    (New York University)

Abstract

This article investigates the provision of police and education services using a new method of indexing quantities of local public services that isolates movements in shadow prices and quantities in expenditure data. Demand equations for two public characteristics (the crime safety rate and high school reading test pass rates) and two categories of expenditures (education and police services) are simultaneously estimated for New Jersey municipalities. The relationship between public services and public characteristics is estimated, and both the "own" and the "cross "-effects of public services are found to be empirically significant. Increases in expenditures between 1982 and 1983 are found to largely reflect increases in quantities of education services and in prices of police services.

Suggested Citation

  • Amy Ellen Schwartz, 1997. "Public Characteristics and Expenditures on Public Services: an Empirical Analysis," Public Finance Review, , vol. 25(2), pages 163-181, March.
    • Handle: RePEc:sae:pubfin:v:25:y:1997:i:2:p:163-181
    DOI: 10.1177/109114219702500202
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    References listed on IDEAS

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    1. Schwartz, Amy Ellen, 1993. "Individual production, community characteristics and the provision of local public services," Journal of Public Economics, Elsevier, vol. 50(2), pages 277-289, February.
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    3. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
    4. Hamilton, Bruce W., 1983. "The flypaper effect and other anomalies," Journal of Public Economics, Elsevier, vol. 22(3), pages 347-361, December.
    5. Craig, Steven G., 1987. "The impact of congestion on local public good production," Journal of Public Economics, Elsevier, vol. 32(3), pages 331-353, April.
    6. Hulten, Charles R, 1984. "Productivity Change in State and Local Governments," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 256-266, May.
    7. Schwab, Robert M. & Zampelli, Ernest M., 1987. "Disentangling the demand function from the production function for local public services : The case of public safety," Journal of Public Economics, Elsevier, vol. 33(2), pages 245-260, July.
    8. Behrman, Jere R & Craig, Steven G, 1987. "The Distribution of Public Services: An Exploration of Local Governmental Preferences," American Economic Review, American Economic Association, vol. 77(1), pages 37-49, March.
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    Cited by:

    1. Fox, William F. & Gurley, Tami, 2006. "Will consolidation improve sub-national governments ?," Policy Research Working Paper Series 3913, The World Bank.

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