The Relationship between Private Consumption and Local Public Goods
The paper looks at local public goods in terms of their complementarities of private consumption.It is assumed a hypothesis that people demand local public goods that are complementary of status goods, like homes, cars, recreation.Then, higher private expenses on status goods, higher local public spending on municipal infrastructure, dwelling economy, transport and communication, culture and national heritage, physical education and sport, and, in general, more property expenditure, including investment.The goal of the study is to investigate empirically whether citizens preferences signaled through status-directed consumption influence the provision of local public goods.The study is based on the data on local public expenditure made by self-governed authorities of districts in 16 provinces in Poland, and the HBS data on households consumption across provinces over 1998-2010.The first part of the research is aimed at revealing status goods while the second one is focused on testing the impact of status-directed consumption on local public spending.Determining status goods is based on the following assumption: if spending on a given good contributes to large extent to the increase in the households financial insecurity, such a good is considered a status good.The household financial security index is built and used as a dependent variable in the regression on measures of consumer behavior.The panel data models are applied to test the impact of status-directed consumption on local public spending.The findings suggest the positive relationship between status consumption (private spending on cars, homes, recreation) and: (1) municipal infrastructure only in the provinces with smaller towns; (2) dwelling economy and transport mostly in the provinces with larger towns; (3) sport in both types of provinces.
Private consumption Local public expenditure
Maria Piotrowska
Wroclaw University of Economics,Wroclaw,Poland,53-345
国际会议
2013 International Conference on Public Administration (9th)(2013年第九届公共管理国际会议)
南非
英文
429-436
2013-10-31（万方平台首次上网日期，不代表论文的发表时间）