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The Demand for Local Public Goods: The Case of Public School Quality

  • David M. Brasington

    (Tulane University)

The demand for public school quality is estimated. Unlike previous studies, the price of a unit of public school quality in the demand estimation is measured by both the tax price and the implicit price calculated from a house price hedonic. Identification, endogeneity, and Tiebout bias are addressed. The tax price elasticity of the demand for public schooling is -.17; the implicit price elasticity of demand is -.11. Both estimates are more inelastic than previously reported elasticities. The income elasticity of demand is .32. The positive relationship between constant-quality house price and public school quality is confirmed.

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File URL: http://pfr.sagepub.com/content/30/3/163.abstract
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Article provided by in its journal Public Finance Review.

Volume (Year): 30 (2002)
Issue (Month): 3 (May)
Pages: 163-187

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Handle: RePEc:sae:pubfin:v:30:y:2002:i:3:p:163-187
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