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Choice experiment assessment of public expenditure preferences

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  • Geoffrey Kerr
  • Ross Cullen
  • Kenneth Hughey

Abstract

Preferences for changes to public expenditures were evaluated using a choice experiment. Results indicate potential efficiency gains from reallocation of expenditures to items with higher marginal welfare. In particular, respondents were found to prefer more spending on health, education and the environment, with health spending providing the highest marginal benefits. The public preferred less expenditure on income support. The choice experiment also identified the impacts of demographic factors. The approach is offered as a complement to prior approaches that research public preferences for budget allocation, with prospects for revelation of richer information for informing social decisions.

Suggested Citation

  • Geoffrey Kerr & Ross Cullen & Kenneth Hughey, 2010. "Choice experiment assessment of public expenditure preferences," New Zealand Economic Papers, Taylor & Francis Journals, vol. 44(3), pages 259-268.
  • Handle: RePEc:taf:nzecpp:v:44:y:2010:i:3:p:259-268
    DOI: 10.1080/00779954.2010.522163
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    References listed on IDEAS

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    1. Jeff Bennett & Russell Blamey (ed.), 2001. "The Choice Modelling Approach to Environmental Valuation," Books, Edward Elgar Publishing, number 2028, April.
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    Keywords

    public expenditure preferences;

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