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Measuring Basic Wants for State and Local Public Goods: A Preference Independence Transformation Approach

Paul R Blackley and Larry DeBoer ()

The Review of Economics and Statistics, 1987, vol. 69, issue 3, 418-25

Abstract: A Rotterdam demand framework is used to estimate the demand for five state and local government (SLG) services. A prefere nce independence transformation of these results identifies the under lying voter wants which these services satisfy. The results reflect a shift from physical capital to human capital wants over the 1952-83 period. A general SLG want accounts for 75 to 95 percent of SLG spend ing over this period. A "minimum service level" want, including mos t highway and infrastructure spending, declines in importance over ti me, while a "human capital/infrastructure contrast" want, composed of education and health spending, increases in importance. Copyright 1987 by MIT Press.

Date: 1987
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