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Micro-Based Estimatesof Demand Functions for Local School Expenditures
Ted Bergstrom, University of California, Santa Barbara
Daniel L. Rubinfeld, University of California, Berkeley
Perry Shapiro, University of California, Santa Barbara
This paper was published in Econometrica in September, 1982.
ABSTRACT: We devise and apply a new method for estimating demand for local public goods from survey data. Individuals' responses to questions about whether they wanted more, less, or the same amount of various local public goods are combined with observations of their incomes, tax rates, and the amounts of actual spending in their home communities. Parameter estimates turn out to be quite similar to those found with studies like
Bergstrom and Goodman's study based on total expenditures across communities.
SUGGESTED CITATION: Ted Bergstrom, Daniel L. Rubinfeld, and Perry Shapiro,
"Micro-Based Estimatesof Demand Functions for Local School Expenditures"
(July 2, 1982).
Department of Economics, UCSB.
Ted Bergstrom.
Paper 1982B.
http://repositories.cdlib.org/ucsbecon/bergstrom/1982B
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