IDEAS home Printed from https://ideas.repec.org/p/tut/cremwp/201120.html
   My bibliography  Save this paper

Reconsidering the Demand for Municipal Public Goods Specification : Evidence from French Municipalities

Author

Listed:
  • Marie-Estelle Binet

    (University of Rennes 1 - CREM, (UMR 6211 CNRS))

Abstract

Following Bergtrom and Goodman (1973), this paper can be integrated in the set of studies that have estimated the demand for municipal public services. The main innovation in this paper is methodological as we use a Stone Geary utility function to describe the median voter preferences. Unlike previous studies, we are able to derive the local public expenditure function in a (simplified) linear expenditure system, directly from the theoretical framework. The linear expenditure system provides an estimate of the portion of the incompressible public expenditure in each municipality. Using cross sectional municipal data from France, it is found to be 30% of the total per capita expenditure. Compared to the specification generally used in the literature, linear expenditure system shows a greater sensitivity to price and income variations and reveal a greater number of significant variables.

Suggested Citation

  • Marie-Estelle Binet, 2011. "Reconsidering the Demand for Municipal Public Goods Specification : Evidence from French Municipalities," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201120, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    • Handle: RePEc:tut:cremwp:201120
    as

    Download full text from publisher

    File URL: https://ged.univ-rennes1.fr/nuxeo/site/esupversions/af9d7294-e26b-4e13-83a9-f2602b28e37f
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
    2. Maarten A. Allers & J. Paul Elhorst, 2011. "A Simultaneous Equations Model Of Fiscal Policy Interactions," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 271-291, May.
    3. Turnbull, Geoffrey K & Djoundourian, Salpie S, 1994. "The Median Voter Hypothesis: Evidence from General Purpose Local Governments," Public Choice, Springer, vol. 81(3-4), pages 223-240, December.
    4. Aaberge, Rolf & Langorgen, Audun, 2003. "Fiscal and Spending Behavior of Local Governments: Identification of Price Effects When Prices Are Not Observed," Public Choice, Springer, vol. 117(1-2), pages 125-161, October.
    5. Christopher B. Colburn & John B. Horowitz, 2003. "Local Politics and the Demand for Public Education," Urban Studies, Urban Studies Journal Limited, vol. 40(4), pages 797-807, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marie-Estelle Binet, 2013. "The Linear Expenditure System and the Demand for Municipal Public Services: The Median Voter Specification Revisited," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1689-1703, July.
    2. D.P. Doessel & Abbas Valadkhani, 2002. "Public Finance and The Size of Government: A Literature Review and Econometric Results for Fiji," School of Economics and Finance Discussion Papers and Working Papers Series 108, School of Economics and Finance, Queensland University of Technology.
    3. Witterblad, Mikael, 2008. "Essays on Redistribution and Local Public Expenditures," Umeå Economic Studies 731, Umeå University, Department of Economics.
    4. Marc Baudry & Matthieu Leprince & Cyriaque Moreau, 2002. "Préférences révélées, bien public local et électeur médian : tests sur données françaises," Économie et Prévision, Programme National Persée, vol. 156(5), pages 125-146.
    5. Eric J. Brunner & Stephen L. Ross, 2009. "Is the Median Voter Decisive? Evidence of 'Ends Against the Middle' From Referenda Voting Patterns," Working papers 2009-02, University of Connecticut, Department of Economics, revised May 2010.
    6. Geoffrey K. Turnbull & Michael T. Tasto, 2008. "Independent Cities and Counties in Virginia: Substitute Jurisdictions?," Urban Studies, Urban Studies Journal Limited, vol. 45(1), pages 53-66, January.
    7. Witterblad, Mikael, 2008. "The Demand for Local Public Services in Sweden," Umeå Economic Studies 730, Umeå University, Department of Economics.
    8. Constantino Cronemberger Mendes & Maria da Conceicao Sampaio de Sousa, 2006. "Demand for locally provided public services within the median voter's framework: the case of the Brazilian municipalities," Applied Economics, Taylor & Francis Journals, vol. 38(3), pages 239-251.
    9. Guido Sechi & Dmitrii Zhitin & Zaiga Krisjane & Maris Berzins, 2022. "Post-Soviet Suburbanization as Part of Broader Metropolitan Change: A Comparative Analysis of Saint Petersburg and Riga," Sustainability, MDPI, vol. 14(13), pages 1-21, July.
    10. Constantino Cronemberger Mendes & Maria da Conceição Sampaio de Sousa, 2015. "Demand for Locally Provided Public Services within the Median Voter's Framework: the Case of the Brazilian Municipalities," Discussion Papers 0134, Instituto de Pesquisa Econômica Aplicada - IPEA.
    11. Audun Langørgen, 2015. "A structural approach for analyzing fiscal equalization," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(3), pages 376-400, June.
    12. Yihua Yu & Jing Wang & Xi Tian, 2016. "Identifying the Flypaper Effect in the Presence of Spatial Dependence: Evidence from Education in China's Counties," Growth and Change, Wiley Blackwell, vol. 47(1), pages 93-110, March.
    13. Geoffrey Turnbull & Gyusuck Geon, 2006. "Local government internal structure, external constraints and the median voter," Public Choice, Springer, vol. 129(3), pages 487-506, December.
    14. Constantino Cronemberger Mendes & Maria da Conceição Sampaio de Sousa, 2004. "Demand for Locally provided Public Services Within the Median Voter`s Framework: The Case of the Brazilian Municipalities," Discussion Papers 1046, Instituto de Pesquisa Econômica Aplicada - IPEA.
    15. 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).
    16. Cruz, Jose Manuel, 2002. "Who is fitting better to Portuguese local demand for public choice: Central government or municipal governments?," ERSA conference papers ersa02p440, European Regional Science Association.
    17. Eric J. Brunner & Stephen L. Ross, 2007. "How Decisive Is the Decisive Voter?," Working papers 2007-28, University of Connecticut, Department of Economics, revised Aug 2008.
    18. Sandy Fréret & Denis Maguain, 2017. "The effects of agglomeration on tax competition: evidence from a two-regime spatial panel model on French data," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1100-1140, December.
    19. Tidiane Ly, 2018. "Sub-metropolitan tax competition with household and capital mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(5), pages 1129-1169, October.
    20. Douglas C. Bice & William H. Hoyt, 1997. "The Impact of Mandates and Tax Limits on Voluntary Contributions to Local Public Services: An Application to Fire Protection Services," Public Economics 9704002, University Library of Munich, Germany.

    More about this item

    Keywords

    Demand for local public services; Median voter; Linear expenditure system; Nonlinear least squares;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tut:cremwp:201120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: GERMAIN Lucie (email available below). General contact details of provider: https://edirc.repec.org/data/crmrefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.