Public Goods, Congestion and Population Size: A Non-Parametric Analysis Using French Data

25 Pages Posted: 5 Dec 2007

See all articles by Yvon Rocaboy

Yvon Rocaboy

Université de Rennes 1 - Faculte de Sciences Economiques

Date Written: 30 November 2007

Abstract

We specify a flexible general framework of the effect of municipality size on the provision of an excludable public good. The model accounts for demand side factors which affect the quality of the public good. Previous literature has recognized that municipality size should have a non-linear effect on the quality of public good 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. We compare our results to the parametric studies and demonstrate that none of the typically-estimated parametric models fit the data particularly well. Furthermore, 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.

Keywords: Local Public Economics, Semi-parametric econometrics, Congestion

JEL Classification: C14, H4, H7, R51

Suggested Citation

Rocaboy, Yvon, Public Goods, Congestion and Population Size: A Non-Parametric Analysis Using French Data (30 November 2007). Available at SSRN: https://ssrn.com/abstract=1044561 or http://dx.doi.org/10.2139/ssrn.1044561

Yvon Rocaboy (Contact Author)

Université de Rennes 1 - Faculte de Sciences Economiques ( email )

7, Place Hoche
35000 Rennes
France

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