NCJ Number
42927
Date Published
1976
Length
59 pages
Annotation
THE DETERMINANTS OF DEMAND FOR STATE AND LOCAL JUDICIAL SERVICES ARE EXAMINED IN A REDUCED FORUM MODEL WITHIN A PUBLIC CHOICE FRAMEWORK TO EXPLAIN STATE-TO-STATE VARIATIONS IN THESE EXPENDITURES.
Abstract
JUDICIAL SERVICES ARE THOSE PUBLICLY SUPPORTED ACTIVITES ASSOCIATED WITH THE ACTUAL PROCESS OF ADJUDICATION (OUTLAYS FOR COURTS AND JUDGES, PROSECUTION, AND INDIGENT DEFENSE). IT IS HYPOTHESIZED THAT THE PROVISION OF STATE AND LOCAL JUDICIAL SERVICES IS WITHOUT ECONOMIES OF SCALE AND, THAT AFTER ACCOUNTING FOR WAGE RATE DIFFERENTIALS, VARIATIONS IN PER CAPITA EXPENDITURES ACROSS STATES FOR THESE SERVICES ARE DUE TO DIFFERENCES IN DEMAND. GOVERNMENT EXPENDITURE PATTERNS ARE THEREFORE ANALYZED USING THE PUBLIC CHOICE APPROACH WHICH ASSUMES THAT, OVER THE LONG RUN, MEDIAN VOTER DEMAND FOR PUBLIC SERVICES WILL BE THE EFFECTIVE DEMAND. A COBB-DOUGLAS PRODUCTION FUNCTION CONSISTENT WITH CONSTANT RETURNS TO SCALE IS USED TO FIND THE FUNCTIONAL FORM OF THE HORIZONTAL SUPPLY CURVE. THE DEMAND VARIABLES ANALYZED ARE AS FOLLOWS: QUANTITY, PRICE, INCOME, PRICES OF RELATED GOODS, EXPECTATIONS ABOUT FUTURE REAL INCOME AND FUTURE PRICE OF THE SERVICE, AND TASTES. IN NO CASE DID THE PUBLIC CHOICE FRAMEWORK AND THE REDUCED-FORUM MODEL FAIL TO EXPLAIN AT LEAST TWO-THRIDS OF THE VARIATION IN AGGREGATE STATE AND LOCAL PER CAPITA JUDICIAL EXPENDITURES, AND IN SPECIAL CASES IT EXPLAINED AS MUCH AS NINE-TENTHS OF THAT VARIATION. IN GENERAL, THE MODEL PERFORMED SLIGHTLY BETTER WHEN USED IN CONNECTION WITH TOTAL JUDICIAL SERVICES, RATHER THAN COURTS ALONE. THE APPENDIX CONTAINS A BRIEF DISCUSSION OF SAMPLE AND DATA SOURCES. A FOUR-PAGE BIBLIOGRAPHY IS ALSO PROVIDED.