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The influence of population size on the relevance of demand or supply models for local public goods : evidence from France

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  • Jean-Michel Josselin

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Yvon Rocaboy

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Christophe Tavéra

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

The relevance of models explaining local public expenditure behaviour may depend upon the size of the population of municipalities. To refine this intuition, the paper puts two alternative specifications in competition, one from the demand side and the other from the supply side. The data set includes 14,900 French municipalities for 1998. The econometric methodology uses a data-sorting method developed to test whether the responsiveness of local governments to voters is stable across small-size and large-size municipalities. It appears that the median-voter model is rejected for the 1,579 municipalities with more than 5,000 inhabitants, for which a supply-driven model fits better.
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  • Jean-Michel Josselin & Yvon Rocaboy & Christophe Tavéra, 2009. "The influence of population size on the relevance of demand or supply models for local public goods : evidence from France," Post-Print halshs-00400708, HAL.
    • Handle: RePEc:hal:journl:halshs-00400708
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    2. Quentin Frère & Hakim Hammadou & Sonia Paty, 2011. "The range of local public services and population size: Is there a “zoo effect” in French jurisdictions?," Recherches économiques de Louvain, De Boeck Université, vol. 77(2), pages 87-104.
    3. Benoît LE MAUX & Kristýna DOSTÁLOVÁ & Antti MOISIO, 2017. "Do political parties matter? Endogenous fragmentation, partisanship, and local public expenditures in Finland," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-02-ccr, Condorcet Center for political Economy.
    4. Guy Gilbert & Alain Guengant & Benoît Le Maux & Yvon Rocaboy, 2012. "Une étude économétrique de la dépense publique locale: Le cas des départements français," Economics Working Paper Archive (University of Rennes & University of Caen) 201203, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.

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