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A Test for Efficiency in the Supply of Local Public Education

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Author Info
Ted Bergstrom () (University of Michigan, Economic)
Judy Roberts
Dan Rubinfeld
Perry Shapiro

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Abstract

This paper devises and applies a statistical test for efficient provision of local public education. The test is based on the ``Samuelson condition'' of equality between the sum of marginal rates of substitution and marginal cost. The econometric method is a micro-based approach to the estimation of the marginal rate of substitution function. This method accounts for possible ``Tiebout bias'' caused by the fact that individuals may choose their school districts in accordance with their tastes for education.

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File URL: http://www.econ.ucsb.edu/~tedb/PubFin/pubtest.ps
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Paper provided by University of Michigan, Department of Economics in its series Papers with number _036.

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Date of creation: 1988
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Handle: RePEc:wop:michec:_036

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ted Bergstrom, 1979. "When Does Majority Rule Supply Public Goods Efficiently?," University of California at Santa Barbara, Economics Working Paper Series 1979A, Department of Economics, UC Santa Barbara. [Downloadable!]
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  2. 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. [Downloadable!] (restricted)
  3. Shapiro, Perry & Sonstelie, Jon, 1982. "Did Proposition 13 Slay Leviathan?," American Economic Review, American Economic Association, vol. 72(2), pages 184-90, May. [Downloadable!] (restricted)
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  5. Bewley, Truman F, 1981. "A Critique of Tiebout's Theory of Local Public Expenditures," Econometrica, Econometric Society, vol. 49(3), pages 713-40, May. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
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  8. Joseph E. Stiglitz, 1984. "The Theory of Local Public Goods Twenty-Five Years After Tiebout: A Perspective," NBER Working Papers 0954, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. John Ledyard, 1983. "The Pure Theory of Large Two Candidate Elections," Discussion Papers 569, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  10. Barlow, Robin, 1970. "Efficiency Aspects of Local School Finance," Journal of Political Economy, University of Chicago Press, vol. 78(5), pages 1028-40, Sept.-Oct. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kelchtermans, Stijn & Verboven, Frank, 2007. "Reducing Product Diversity in Higher Education," CEPR Discussion Papers 6508, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Lisa Barrow & Cecilia Elena Rouse, 2002. "Using Market Valuation to Assess Public School Spending," NBER Working Papers 9054, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Åsa Ahlin & Eva Johansson, 2001. "Individual Demand for Local Public Schooling: Evidence from Swedish Survey Data," International Tax and Public Finance, Springer, vol. 8(4), pages 331-351, August. [Downloadable!] (restricted)
    Other versions:
  4. Robert P. Inman, 1993. "Presidential Leadership and the Reform of Fiscal Policy: Learning from Reagan's Role in TRA 86," NBER Working Papers 4395, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Lars P. Feld & Gebhard Kirchgässner, 2004. "Sustainable Fiscal Policy in a Federal System: Switzerland as an Example," Marburg Working Papers on Economics 200424, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung). [Downloadable!]
    Other versions:
  6. Lisa Barrow & Cecilia Elena Rouse, 2000. "Using Market Valuation to Assess the Importance and Efficiency of Public School Spending," Econometric Society World Congress 2000 Contributed Papers 1446, Econometric Society. [Downloadable!]
    Other versions:
  7. Lars P Feld, 2004. "On Tax Competition: The (Un-)Expected Advantages of Decentralized Fiscal Autonomy," Marburg Working Papers on Economics 200425, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung). [Downloadable!]
  8. Ahlin, Åsa & Johansson, Eva, 2000. "Demand for Local Public Schooling: Another Brick in the Wall," Working Paper Series 2000:12, Uppsala University, Department of Economics. [Downloadable!]
    Other versions:
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