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Segmented Regression, Threshold Effects, and Police Expenditures in Small Cities

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  • Thomas F. Stinson
  • Andrea Lubov

Abstract

Individuals projecting local government expenditures in small cities typically assume that average costs can be represented by a single, smooth, continuous function. This paper discusses why assuming piece-wise continuity may be more realistic. Segmented regression is then used to test for discontinuities in local per capita expenditures for police protection in Minnesota, North Dakota, and Wisconsin. Three distinct segments were found for expenditures in North Dakota and Wisconsin; two for Minnesota. Minnesota and Wisconsin results improved further when cities with declining and nondeclining populations were treated separately.

Suggested Citation

  • Thomas F. Stinson & Andrea Lubov, 1982. "Segmented Regression, Threshold Effects, and Police Expenditures in Small Cities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 738-746.
    • Handle: RePEc:oup:ajagec:v:64:y:1982:i:4:p:738-746.
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    File URL: http://hdl.handle.net/10.2307/1240583
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    Cited by:

    1. Vergori, Anna Serena & Arima, Serena, 2022. "Low-cost carriers and tourism in the Italian regions: A segmented regression model," Annals of Tourism Research, Elsevier, vol. 97(C).
    2. Carmen van der Merwe & Martin de Wit, 2021. "An In-Depth Investigation into the Relationship Between Municipal Solid Waste Generation and Economic Growth in the City of Cape Town," Working Papers 07/2021, Stellenbosch University, Department of Economics, revised 2021.
    3. Doeksen, Gerald A. & Peterson, Janet, 1987. "Critical Issues In The Delivery Of Local Government Services In Rural America," Staff Reports 277911, United States Department of Agriculture, Economic Research Service.
    4. Harris, Thomas R. & Shonkwiler, John Scott & Ebai, George E. & Janson, Peter, 2000. "Application of BEA Economic Areas in the Development of the Great Basin Fiscal Impact Model," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 30(1), pages 1-18.

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