IDEAS home Printed from
   My bibliography  Save this article

Two Approaches To Estimating Public Expenditures


  • Werner W. Pommerehne

    (University of Konstanz)

  • Bruno S. Frey

    (Universities of Konstanz and Basle)


Traditionally, the demand for public expenditures has been estimated using for explanatory variables the average values of per capita income, as well as other variables. The results of this approach are disappointing, due to the lack of a theoretical basis. The public choice model, on the other hand, uses the political decision-making process (median voter model) to explain expenditures. Taking the same set of data, it can be shown that the public choice approach yields superior results. It also offers a solution to the unfruitful discussion about the influence of "political" determinants of public expenditures

Suggested Citation

  • Werner W. Pommerehne & Bruno S. Frey, 1976. "Two Approaches To Estimating Public Expenditures," Public Finance Review, , vol. 4(4), pages 395-407, October.
  • Handle: RePEc:sae:pubfin:v:4:y:1976:i:4:p:395-407

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Zodrow, George R., 2001. "The Property Tax as a Capital Tax: A Room With Three Views," National Tax Journal, National Tax Association, vol. 54(1), pages 139-156, March.
    2. James Alm & Mikhail I. Melnik, 2012. "Cross-border Shopping and State Use Tax Liabilities: Evidence from eBay Transactions," Working Papers 1205, Tulane University, Department of Economics.
    3. Zodrow, George R., 2001. "The Property Tax as a Capital Tax: A Room with Three Views," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 139-56, March.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Bruno S. Frey & Lasse Steiner, 2012. "Political Economy: Success or Failure?," Contemporary Economics, University of Finance and Management in Warsaw, vol. 6(3), September.
    2. Paul Wyckoff, 1989. "Bureaucracy and the ‘publicness’ of local public goods: A reply to Gonzalez, Folsom and Mehay," Public Choice, Springer, vol. 62(1), pages 79-82, July.
    3. Alois Stutzer & Lukas Kienast, 2005. "Demokratische Beteiligung und Staatsausgaben: Die Auswirkungen des Frauenstimmrechts," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(IV), pages 617-650, December.
    4. Sarani Saha, 2011. "City-level analysis of the effect of political regimes on public good provision," Public Choice, Springer, vol. 147(1), pages 155-171, April.
    5. Eric J. Brunner & Stephen L. Ross, 2007. "How Decisive Is the Decisive Voter?," Working papers 2007-28, University of Connecticut, Department of Economics, revised Aug 2008.
    6. repec:ces:ifodre:v:16:y:2009:i:05:p:s.13-20 is not listed on IDEAS
    7. Randall Holcombe, 1989. "The median voter model in public choice theory," Public Choice, Springer, vol. 61(2), pages 115-125, May.
    8. Montmarquette, Claude, 1988. "Le marché politique : qu’est-ce qui est produit? Qui y participe? Qui en profite?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 64(3), pages 336-360, septembre.
    9. Arthur Schram & Frans Winden, 1989. "Revealed preferences for public goods: Applying a model of voter behavior," Public Choice, Springer, vol. 60(3), pages 259-282, March.
    10. Marc Baudry & Matthieu Leprince & Cyriaque Moreau, 2002. "Préférences révélées, bien public local et électeur médian : tests sur données françaises," Economie & Prévision, La Documentation Française, vol. 156(5), pages 125-146.
    11. Brunner, Eric J. & Ross, Stephen L., 2010. "Is the median voter decisive? Evidence from referenda voting patterns," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 898-910, December.
    12. Lars P. Feld & Gebhard Kirchgaessner & Christoph A. Schaltegger, 2010. "Decentralized Taxation and the Size of Government: Evidence from Swiss State and Local Governments," Southern Economic Journal, Southern Economic Association, vol. 77(1), pages 27-48, July.
    13. Rodney Fort, 1988. "The median voter, setters, and non-repeated construction bond issues," Public Choice, Springer, vol. 56(3), pages 213-231, March.
    14. Filip Palda, 2002. "Interest Groups: An Introduction," Public Economics 0209006, EconWPA.
    15. Fuest, Clemens & Huber, Bernd, 2001. "Tax Competition and Tax Coordination in a Median Voter Model," Public Choice, Springer, vol. 107(1-2), pages 97-113, April.
    16. Benoît Le Maux, 2009. "How Do Policy-Makers Actually Solve Problems? Evidence From The French Local Public Sector," Economics and Politics, Wiley Blackwell, vol. 21(2), pages 201-231, July.
    17. Blankart, Charles B., 1975. "Neuere Ansätze zur Erklärung des Wachstums der Staatsausgaben: Ein interpretierender Überblick," Discussion Papers, Series I 67, University of Konstanz, Department of Economics.
    18. Cruz, Jose Manuel, 2002. "Who is fitting better to Portuguese local demand for public choice: Central government or municipal governments?," ERSA conference papers ersa02p440, European Regional Science Association.
    19. José Cruz, 2001. "An empirical application of the median voter model and of the interest group influence model to the Portuguese and Galician municipalities," ERSA conference papers ersa01p25, European Regional Science Association.
    20. Lars Feld & Christoph Schaltegger, 2010. "Political stability and fiscal policy: time series evidence for the Swiss federal level since 1849," Public Choice, Springer, vol. 144(3), pages 505-534, September.
    21. José Manuel Cruz, 2004. "Empirical analysis of the influence of voters and politicians in the public choice of Portuguese municipalities universidade portucalense," ERSA conference papers ersa04p367, European Regional Science Association.
    22. Rhee, Se-Koo, 1996. "The impact of intergovernmental grants-in-aid on public school expenditure under the segregated school system," ISU General Staff Papers 1996010108000012396, Iowa State University, Department of Economics.
    23. Marie-Estelle Binet & Jean-Sébastien Pentecote, 2003. "Tax shape, debt and electoral opportunism at the municipal level: French empirical evidence and a model (?)," ERSA conference papers ersa03p28, European Regional Science Association.
    24. George Boyne, 1987. "Median voters, political systems and public policies: An empirical test," Public Choice, Springer, vol. 53(3), pages 201-219, January.
    25. Carolin Fritzsche, 2018. "Analyzing the Efficiency of County Road Provision - Evidence from Eastern German Counties," ifo Working Paper Series 249, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:4:y:1976:i:4:p:395-407. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.