Locally Provided Public Schooling in Brazilian Municipalities

The objective of this paper is to assess the demand for public schooling in the Brazilian municipalities within a median voter framework. The quantile regression and spatial techniques proved to be useful to account for the spatial and marginal effects associated with educational services. The coefficients attached to the main variables – price, income and population – were significant and had the expected sign. The relatively high values for those parameters attest the status for these merit goods as “luxuries”. Last, but no least, the municipal school system in Brazil seems to present increasing returns to scale both, at the school and the municipality level.