Assessing the Importance of Tiebout Sorting: Local Heterogeneity from 1850 to 1990
This paper argues that long-run trends in geographic segregation are inconsistent with models where residential choice depends solely on local public goods (the Tiebout hypothesis). We develop an extension of the Tiebout model that predicts as mobility costs fall, the heterogeneity across communitie...
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| Veröffentlicht in: | The American economic review 2003-12, Vol.93 (5), p.1648-1677 |
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| container_title | The American economic review |
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| creator | Rhode, Paul W. Strumpf, Koleman S. |
| description | This paper argues that long-run trends in geographic segregation are inconsistent with models where residential choice depends solely on local public goods (the Tiebout hypothesis). We develop an extension of the Tiebout model that predicts as mobility costs fall, the heterogeneity across communities of individual public good preferences and of public good provision must (weakly) increase. Given the secular decline in mobility costs, these predictions can be evaluated using historical data. We find decreasing heterogeneity in policies and proxies for preferences across (i) a sample of U.S. municipalities (1870-1990); (ii) all Boston-area municipalities (1870-1990); and (iii) all U.S. counties (1850-1990). |
| doi_str_mv | 10.1257/000282803322655482 |
| format | Article |
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We develop an extension of the Tiebout model that predicts as mobility costs fall, the heterogeneity across communities of individual public good preferences and of public good provision must (weakly) increase. Given the secular decline in mobility costs, these predictions can be evaluated using historical data. We find decreasing heterogeneity in policies and proxies for preferences across (i) a sample of U.S. municipalities (1870-1990); (ii) all Boston-area municipalities (1870-1990); and (iii) all U.S. counties (1850-1990).</description><subject>Automobiles</subject><subject>Censuses</subject><subject>Communities</subject><subject>Community</subject><subject>Community power</subject><subject>Cost analysis</subject><subject>Economic analysis</subject><subject>Economic models</subject><subject>Economic theory</subject><subject>Economics</subject><subject>Education</subject><subject>Factor mobility</subject><subject>Game theory</subject><subject>Geography</subject><subject>Hypotheses</subject><subject>Income taxes</subject><subject>Mobility</subject><subject>Modeling</subject><subject>Municipalities</subject><subject>Per capita</subject><subject>Preferences</subject><subject>Proxies</subject><subject>Public good</subject><subject>Public goods</subject><subject>Regional disparities</subject><subject>Regional economics</subject><subject>Residential mobility</subject><subject>Retirement communities</subject><subject>School taxes</subject><subject>Segregation</subject><subject>Statistical analysis</subject><subject>Studies</subject><subject>Tax 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| source | EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing; American Economic Association Web |
| subjects | Automobiles Censuses Communities Community Community power Cost analysis Economic analysis Economic models Economic theory Economics Education Factor mobility Game theory Geography Hypotheses Income taxes Mobility Modeling Municipalities Per capita Preferences Proxies Public good Public goods Regional disparities Regional economics Residential mobility Retirement communities School taxes Segregation Statistical analysis Studies Tax policy Trends |
| title | Assessing the Importance of Tiebout Sorting: Local Heterogeneity from 1850 to 1990 |
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