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Costs and Factor Substitution in the Provision of Local Fire Services

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  • Duncombe, William D

Abstract

Evidence on costs and factor substitution is presented for a sample of local fire departments in New York State. The results suggest that fire service production does not fit either Leontief, Cobb-Douglas, or CES technology. In addition, exogenous socioeconomic variables are found to significantly affect public-sector costs and the estimates of factor price elasticities. The findings of relatively low factor demand and substitution elasticities suggest that local governments may have limited flexibility in adjusting their production of fire services to minimize the impact of rising factor prices. Copyright 1992 by MIT Press.

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  • Duncombe, William D, 1992. "Costs and Factor Substitution in the Provision of Local Fire Services," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 180-184, February.
  • Handle: RePEc:tpr:restat:v:74:y:1992:i:1:p:180-84
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    Cited by:

    1. Scorsone, Eric, 2007. "School District and Municipal Reorganization: Research Findings & Policy Proposals," Staff Paper Series 6543, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Brunet, Alexia & McNamara, Kevin T. & Deboer, Larry, 2001. "Alternative Service Delivery Strategies For Local Governments," 2001 Annual meeting, August 5-8, Chicago, IL 20705, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Figlio, David N., 1999. "Functional form and the estimated effects of school resources," Economics of Education Review, Elsevier, vol. 18(2), pages 241-252, April.
    4. Cheung, Ron, 2008. "The interaction between public and private governments: An empirical analysis," Journal of Urban Economics, Elsevier, vol. 63(3), pages 885-901, May.
    5. Burton A. Abrams & Evangelos M. Falaris & James G. Mulligan, 2015. "Municipal Technological Change in the 19th Century: The Diffusion of Steam-Powered Fire-Fighting Equipment," Working Papers 15-09, University of Delaware, Department of Economics.

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