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Demand for Local Public Schooling: Another Brick in the Wall

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  • Ahlin, A.
  • Johansson, E.

Abstract

In this paper we investigate the demand for local public school expenditures in Sweden. By using survey data, a method previously never applied to Swedish data, the paper provides an additional piece of evidence on individual demand for publicly provided local services. Estimating a linear demand specification, we find that the demand is inelastic with respect to income and tax, much in line with previous Swedish findings in a median voter framework. Estimation of a log-linear demand specification indicates more elastic demand. Testing the hypothesis that municipal employees tend to have a higher demand for public spending than others, we conclude that income, as well as taxprice, enters the demand function differently for the two groups of employees. We find no evidence of Tiebout sorting.

Suggested Citation

  • Ahlin, A. & Johansson, E., 2000. "Demand for Local Public Schooling: Another Brick in the Wall," Papers 2000:120, Uppsala - Working Paper Series.
    • Handle: RePEc:fth:uppaal:2000:120
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    Cited by:

    1. Ahlin, Åsa, 2003. "Does School Competition Matter? Effects of a Large-Scale School Choice Reform on Student Performance," Working Paper Series 2003:2, Uppsala University, Department of Economics.
    2. Åsa Ahlin & Eva Johansson, 2001. "Individual Demand for Local Public Schooling: Evidence from Swedish Survey Data," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 331-351, August.

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    Keywords

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    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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