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Individual Demand for Local Public Schooling: Evidence from Swedish Survey Data

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  • Åsa Ahlin
  • Eva Johansson

Abstract

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 specification, we find that demand is inelastic with respect to income and taxprice, much in line with previous Swedish findings in a median voter framework. Estimation of a log-linear demand specification indicates that the elasticities of demand for schooling are higher in Sweden than in the US. Testing the hypothesis 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. Copyright Kluwer Academic Publishers 2001

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  • Åsa Ahlin & Eva Johansson, 2001. "Individual Demand for Local Public Schooling: Evidence from Swedish Survey Data," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 331-351, August.
    • Handle: RePEc:kap:itaxpf:v:8:y:2001:i:4:p:331-351
    DOI: 10.1023/A:1011206621433
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    Cited by:

    1. Dahlberg, M. & Fredriksson, P., 2001. "Migration and Local Public Services," Papers 2001-12, Uppsala - Working Paper Series.
    2. Mirco Tonin & Michael Vlassopoulos, 2015. "Are public sector workers different? Cross-European evidence from elderly workers and retirees," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.
    3. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer, 2012. "County-level determinants of local public services in Appalachia: a multivariate spatial autoregressive model approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 175-190, August.
    4. Dahlberg, Matz & Mörk, Eva & Sorribas Navarro, Pilar, 2011. "Do Politicians’ Preferences Matter for Voters’ Voting Decisions?," Working Paper Series 2011:10, Uppsala University, Department of Economics.
    5. Jakobsson, Niklas, 2009. "Why do you want lower taxes? Preferences regarding municipal income tax rates," Working Papers in Economics 345, University of Gothenburg, Department of Economics.
    6. Gebremeskel Gebremariam, 2007. "Modeling Small Business Growth, Migration Behavior, Local Public Services and Household Income in Appalachia: A Spatial Simultaneous Equations Approach," Working Papers Working Paper 2007-03, Regional Research Institute, West Virginia University.
    7. repec:rri:wpaper:200711 is not listed on IDEAS
    8. Aurélie Cassette & Etienne Farvaque, 2019. "Sticky decentralization? Evidence from the French school reform," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2019-03-ccr, Condorcet Center for political Economy.
    9. Hanna Ågren & Matz Dahlberg & Eva Mörk, 2007. "Do politicians’ preferences correspond to those of the voters? An investigation of political representation," Public Choice, Springer, vol. 130(1), pages 137-162, January.
    10. Gebremariam, Gebremeskel H. & Gebremedhin, Tesfa G. & Schaeffer, Peter V. & Phipps, Tim T. & Jackson, Randall W., 2007. "A Spatial Panel Simultaneous-Equations Model of Business Growth, Migration Behavior, Local Public Services and Household Income in Appalachia," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9895, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. repec:rri:wpaper:200609 is not listed on IDEAS
    12. Maria da Conceição Sampaio e Sousa, 2011. "Locally Provided Public Schooling in Brazilian Municipalities," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 12(3), pages 427-444.
    13. Bergstrom, Pal & Dahlberg, Matz & Mork, Eva, 2004. "The effects of grants and wages on municipal labour demand," Labour Economics, Elsevier, vol. 11(3), pages 315-334, June.
    14. Ahlin, Åsa & Mörk, Eva, 2008. "Effects of decentralization on school resources," Economics of Education Review, Elsevier, vol. 27(3), pages 276-284, June.
    15. repec:rri:wpaper:200703 is not listed on IDEAS
    16. Gebremariam, Gebremeskel H. & Gebremedhin, Tesfa G., 2006. "County-Level Determinants of Local Public Services in Appalachia: A Multivariate Spatial Autoregressive Model Approach," 2006 Annual meeting, July 23-26, Long Beach, CA 21375, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Cassette, Aurélie & Farvaque, Etienne, 2016. "A dirty deed done dirt cheap: Reporting the blame of a national reform on local politicians," European Journal of Political Economy, Elsevier, vol. 43(C), pages 127-144.
    18. Svaleryd, Helena, 2002. "Femal Representation - Is it Important for Policy Decisions?," Research Papers in Economics 2002:7, Stockholm University, Department of Economics.
    19. Ismael Sanz & Francisco Javier Velázquez, 2002. "Determinants of the Composition of Government Expenditure by Functions," European Economy Group Working Papers 13, European Economy Group.
    20. Dayton M. Lambert & Christopher D. Clark & Michael D. Wilcox & William M. Park, 2009. "Public Education Financing Trends and the Gray Peril Hypothesis," Growth and Change, Wiley Blackwell, vol. 40(4), pages 619-648, December.
    21. Catalina Gutiérrez & Ryuichi Tanaka, 2009. "Inequality and education decisions in developing countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(1), pages 55-81, March.

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    More about this item

    Keywords

    demand for local public school expenditure; survey data; public employees;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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