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Segmented Regression, Threshold Effects, and Police Expenditures in Small Cities
Author(s) -
Stinson Thomas F.,
Lubov Andrea
Publication year - 1982
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1240583
Subject(s) - per capita , county government , regression , local government , regression analysis , classification of discontinuities , geography , demographic economics , regression discontinuity design , government (linguistics) , economics , statistics , demography , political science , mathematics , sociology , public administration , population , archaeology , mathematical analysis , linguistics , philosophy
Abstract Individuals projecting local government expenditures in small cities typically assume that average costs can be represented by a single, smooth, continuous function. This paper discusses why assuming piece‐wise continuity may be more realistic. Segmented regression is then used to test for discontinuities in local per capita expenditures for police protection in Minnesota, North Dakota, and Wisconsin. Three distinct segments were found for expenditures in North Dakota and Wisconsin; two for Minnesota. Minnesota and Wisconsin results improved further when cities with declining and nondeclining populations were treated separately.