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IFAU - Institute for Evaluation of Labour Market and Education Policy

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 specifica-tion, we find that demand is inelastic with respect to income and taxprice, much in line with previous Swedish findings in a median voter framework. Es-timation of a log-linear demand specification indicates that the elasticities of demand for schooling are higher in Sweden than in the US. Testing the hy-pothesis 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.

Keywords: individual demand; local public schooling; survey data; public employees

JEL-codes: C25; H40; H72

34 pages, February 19, 2001

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Published as

Åsa Ahlin and Eva Johansson, (2001), 'Individual demand for local public schooling: Evidence from Swedish survey data', International Tax and Public Finance, vol 8, no 4, pages 331-351

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