The Review of Economics and Statistics Vol. 70 No. 1 1988
An Examination of Preferences for Local Public Sector Outputs
Abstract
Relatively unique data on the costs of public services for local governments in Victoria, Australia, are used to estimate a system of demand equations and to test alternative specifications of the underlying preferences using a translog model. Symmetry conditions are rejected so the data are not consistent with constrained utility maximization. A nonparametric test confirms that result. Conditional on symmetry, tests reject homogeneity and the additivity of preferences and also the separability of personal and property services.
- DOI
- 10.2307/1928149
- Volume
- 70
- Issue
- 1
- Pages
- 45
- Sources
- crossref openalex