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Exploring the relationship between ‘Ex Ante’ support for voting to prioritise government investment and a willingness to pay higher taxes for transport investment


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Communities of stakeholders are increasingly demanding a voice on how governments should prioritise the amount spent on investment projects, especially in areas such as transport, education and health where the cry is loud for a greater commitment of funds to improve infrastructure. Using data collected in six Australian capital cities in 2013, we investigate the relationship between stakeholder support for voting as a way for governments to decide which projects, in a generic sense, to invest in, and the willingness to support higher taxes to pay for increased investment in transport infrastructure. We estimate a bivariate probit model to account for the potential interdependence between these two issues. The evidence, presented as elasticities, suggests that there are diferences between cities which impact on both voting and raising taxes to pay for investments, as well as experience in using public transport, and a number of socioeconomic characteristics of stakeholders.

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