NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Local Public Good Provision: Voting, Peer Effects, and Mobility

Stephen Calabrese, Dennis Epple, Thomas Romer, Holger Sieg

NBER Working Paper No. 11720
Issued in October 2005
NBER Program(s):   PE

Few empirical strategies have been developed that investigate public provision under majority rule while taking explicit account of the constraints implied by mobility of households. The goal of this paper is to improve our understanding of voting in local communities when neighborhood quality depends on peer or neighborhood effects. We develop a new empirical approach which allows us to impose all restrictions that arise from locational equilibrium models with myopic voting simultaneously on the data generating process. We can then analyze how close myopic models come in replicating the main regularities about expenditures, taxes, sorting by income and housing observed in the data. We find that a myopic voting model that incorporates peer effects fits all dimensions of the data reasonably well.

download in pdf format
   (370 K)

email paper

This paper is available as PDF (370 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w11720

Published: Calabrese, Stephen, Dennis Epple, Thomas Romer and Holger Sieg. "Local Public Good Provision: Voting, Peer Effects, And Mobility," Journal of Public Economics, 2006, v90(6-7,Aug), 959-981.

Users who downloaded this paper also downloaded these:
Epple, Romer, and Sieg w6977 The Tiebout Hypothesis and Majority Rule: An Empirical Analysis
Epple and Romano w7850 Neighborhood Schools, Choice, and the Distribution of Educational Benefits
Besley and Coate w7084 Centralized versus Decentralized Provision of Local Public Goods: A Political Economy Analysis
Edlin, Gelman, and Kaplan w13562 Voting as a Rational Choice: Why and How People Vote to Improve the Well-Being of Others
Olken w14123 Direct Democracy and Local Public Goods: Evidence from a Field Experiment in Indonesia
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us