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Individual demand for local public schooling: Evidence from Swedish survey data

  • Ahlin, Åsa

    (IFAU - Office of Labour Market Policy Evaluation)

  • Johansson, Eva

    ()

    (IFAU - Office of Labour Market Policy Evaluation)

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.

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2001:1.

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Length: 34 pages
Date of creation: 19 Feb 2001
Date of revision:
Publication status: Published in International Tax and Public Finance, 2001, pages 331-351.
Handle: RePEc:hhs:ifauwp:2001_001
Contact details of provider: Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
Fax: (+46) 18 - 471 70 71
Web page: http://www.ifau.se/
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  1. Bradford, David F & Oates, Wallace E, 1971. "An Analysis of Revenue Sharing in a New Approach to Collective Fiscal Decisions," The Quarterly Journal of Economics, MIT Press, vol. 85(3), pages 416-39, August.
  2. Ted Bergstrom & Judy Roberts & Dan Rubinfeld & Perry Shapiro, 1988. "A Test for Efficiency in the Supply of Local Public Education," Papers _036, University of Michigan, Department of Economics.
  3. Rubinfeld, Daniel L. & Shapiro, Perry, 1989. "Micro-estimation of the demand for schooling : Evidence from Michigan and Massachusetts," Regional Science and Urban Economics, Elsevier, vol. 19(3), pages 381-398, August.
  4. Filimon, Radu & Romer, Thomas & Rosenthal, Howard, 1982. "Asymmetric information and agenda control : The bases of monopoly power in public spending," Journal of Public Economics, Elsevier, vol. 17(1), pages 51-70, February.
  5. Courant, Paul N & Gramlich, Edward M & Rubinfeld, Daniel L, 1979. "Public Employee Market Power and the Level of Government Spending," American Economic Review, American Economic Association, vol. 69(5), pages 806-17, December.
  6. Edward M. Gramlich & Daniel L. Rubinfeld, 1982. "Voting on public spending: Differences between public employees, transfer recipients, and private workers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 1(4), pages 516-533.
  7. Bergstrom, Theodore C. & Roberts, Judith A. & Rubinfeld, Daniel L. & Shapiro, Perry, 1988. "A test for efficiency in the supply of public education," Journal of Public Economics, Elsevier, vol. 35(3), pages 289-307, April.
  8. Bergstrom, Theodore C & Rubinfeld, Daniel L & Shapiro, Perry, 1982. "Micro-Based Estimates of Demand Functions for Local School Expenditures," Econometrica, Econometric Society, vol. 50(5), pages 1183-1205, September.
  9. Schokkaert, Erik, 1987. "Preferences and demand for local public spending," Journal of Public Economics, Elsevier, vol. 34(2), pages 175-188, November.
  10. Ahlin, A. & Johansson, E., 2000. "Demand for Local Public Schooling: Another Brick in the Wall," Papers 2000:120, Uppsala - Working Paper Series.
  11. Bergstrom, P. & Dahlberg, M. & Johansson, E., 1998. "Municipal Labour Demand. Sweden 1988-1995," Papers 1998:24, Uppsala - Working Paper Series.
  12. Dahlberg, M. & Jacob, J., 2000. "Sluggishness, Endogeneity and the Demand for Local Public Services," Papers 2000:17, Uppsala - Working Paper Series.
  13. Rubinfeld, Daniel L & Shapiro, Perry & Roberts, Judith, 1987. "Tiebout Bias and the Demand for Local Public Schooling," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 426-37, August.
  14. Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-60, June.
  15. Aronsson, Thomas & Wikstrom, Magnus, 1996. "Local public expenditure in Sweden a model where the median voter is not necessarily decisive," European Economic Review, Elsevier, vol. 40(9), pages 1705-1716, December.
  16. Shapiro, P. & Papadakis, E., 1991. "Citizen Preferences and Public Education in Australia: An Analysis of Interstate Diffrences," CEPR Discussion Papers 252, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  17. Rongen, Gunnar, 1995. "Efficiency in the provision of local public goods in Norway," European Journal of Political Economy, Elsevier, vol. 11(2), pages 253-264, June.
  18. Ian Preston & Michael Ridge, 1993. "Demand for local public spending," IFS Working Papers W93/16, Institute for Fiscal Studies.
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