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The Demand for Local Public Services in Sweden

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  • Witterblad, Mikael

    () (Department of Economics, Umeå University)

Abstract

This paper analyzes the composition of municipal expenditures in Sweden by estimating a demand system for local public services, in which tax revenue collection is treated as endogenous. The estimation is based on the QAIDS specification. The empirical application uses panel data for the period 1998-2005 and for six local public services. The results show that the point estimates of all income elasticities except one are positive, and that none of them significantly exceeds one. Furthermore, the point estimates of the own-price elasticities are negative and less than one in absolute value for all services.

Suggested Citation

  • Witterblad, Mikael, 2008. "The Demand for Local Public Services in Sweden," Umeå Economic Studies 730, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0730
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    References listed on IDEAS

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    More about this item

    Keywords

    Demand system; local public finance; local government spending;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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