Individual demand for local public schooling: Evidence from Swedish survey data
In this paper we investigate the demand for local public school expenditures in Sweden using survey data, a method previously never applied to Swedish data. We compare our results to those of earlier US studies, where the same method is used in a different institutional setup. Estimating a linear demand specifica-tion, we find that demand is inelastic with respect to income and taxprice, much in line with previous Swedish findings in a median voter framework. Es-timation of a log-linear demand specification indicates that the elasticities of demand for schooling are higher in Sweden than in the US. Testing the hy-pothesis that municipal employees tend to have a higher demand for public spending than others, we conclude that income, as well as taxprice and grants, enters the demand function differently for the two groups of employees.
|Date of creation:||19 Feb 2001|
|Date of revision:|
|Publication status:||Published in International Tax and Public Finance, 2001, pages 331-351.|
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