Per-capita public expenditures and population size: a non-parametric analysis using French data
- 112 Downloads
Based on the median voter model, we specify a flexible general framework of the effect of municipality size on per-capita public expenditures. Previous literature has recognized that municipality size should have a non-linear effect on the quality of public goods provision and to this end different papers have applied a range of alternative parametric specifications. Using a very large sample of French “communes” we are able to estimate the effect of municipality size semi-parametrically. In contrast with the parametric specifications, we find evidence of the U-shaped relationship between per-capita public expenditures and population which is predicted by theory.
KeywordsLocal Public Economics Semi-parametric econometrics Congestion
JEL ClassificationC14 H4 H7 R51
Unable to display preview. Download preview PDF.
- Bergstrom, T. C., & Goodman, R. P. (1973). Private demand for public goods. American Economic Review, 63, 286–296. Google Scholar
- Borcherding, T. E., & Deacon, R. T. (1972). The demand of services of non-federal governments. American Economic Review, 62, 891–901. Google Scholar
- Cornes, R. C., & Sandler, T. (1996). The theory of externalities, public goods and club goods (2nd edn.). Cambridge: Cambridge University Press. Google Scholar
- Reiter, M., & Weichenrieder, A. (1997). Are public goods public: a critical survey of the demand estimates for local public services. Finanzarchiv, 54, 374–408. Google Scholar