The median voter according to GARP

This paper adapts the generalized axiom of revealed preference (GARP) empirical method to the public goods problem to test whether observed municipal public spending can be explained "as if" the city governments maximize the utility of the median income voter. It applies the test procedure for medium-size municipal governments in five Midwest states. The data are consistent with GARP and reveal that the local governments in the sample behave as if they maximize median voter utility once we control for the state-specific effects, government management structure, and population density.