AN EMPIRICAL TEST OF THE MEDIAN VOTER MODEL

This paper uses data at the school district level for 257 Michigan school districts to estimate the Bowen equilibrium level of expenditures in each district. The estimation uses a theoretical model of millage referenda that is developed in the paper. Then, the estimated Bowen equilibrium level of expenditures in each district is compared with the actual level. In the average district, the actual level of expenditures is less than 3 percent away from the estimated Bowen equilibrium. This evidence strongly suggests that, for educational expenditures at least, the theoretical median voter model provides a good explanation of empirical reality.