Living costs, the Tiebout hypothesis, and welfare policy RICHARD J
11-5-1998 · The Tiebout Hypothesis: These papers are an important part the tiebout hypothesis of A.A.
CEBULA* The Tiebout hypothesis (1956, p
14-10-2016 · The Tiebout hypothesis, which states that individuals will costlessly sort themselves across local communities according to their public good preferences.
The general conclusion is that the Tiebout hypothesis is accepted in the Angolan regions, and that the most important cause of migration is regional poverty.
What is the Tiebout hypothesis? - SKU 130193
The nature of competition between jurisdictions is crucial. If jurisdictions compete for tax base rather than residents, the fiscal externality problem arises (ref. , for example). Each jurisdiction, in attempting to increase its revenue, may cut taxes on industry, leading to undesirably low revenues and low levels of public goods. It is suggested that competition between jursidictions may thus lead to a “race to the bottom,” to outcomes far from those attainable by cooperation, rather than a “race to the top,” as suggested by the Tiebout Hypothesis; see ref. for an interesting nontechnical discussion. Recent literature suggests that the fiscal externality problem may be alleviated by tax coordination () and the choice of constitutional rules ().
Some possible imitations of the Tiebout Hypothesis are collected in ref. : there must be as many jurisdictions as types of players, taxes cannot depend on tastes, and equilibrium typically will not exist except under special assumptions. The arguments are not compelling. In general, it may be optimal for there to be several types of players within a jurisdiction. Finite numbers of types of players and many players of each type are intended to model situations with many players of each of a relatively few approximate types; thus, how many jurisdictions are required depends on how close we require approximate types to be. Tiebout economies cannot be expected to have better existence properties than economies with only private goods; existence of exact equilibrium in private goods economies requires special assumptions, for example, convexity of preferences, divisibility of commodities, or a continuum of agents. The crowding types model resolves the problem that taxes (or cost-sharing schemes) cannot depend on private information of players (their tastes). The possible emptiness of the core is resolved through the effects of large numbers of participants. Profit maximizing governments (refs. and , among others) also help in realizing efficient outcomes. The difference between the conclusions of ref. and the research reported above may derive from the fact that Bewley, like some other writers, does not consider economies with many jurisdictions. For further discussion of ref. , see ref. .
An alternate test of the Tiebout hypothesis - IDEAS/RePEc
Stiglitz (1977), Brueckner (1979), Atkinson and Stiglitz (19801,and Bewley (1981)use various frameworks to show that the Tiebout (1956) hypothesis-that people will sort themselves among communities offering various levels of public goods in a way such that the allocation will be Pareto efficient-is extremely sensitive to the assumptions.
The Tiebout hypothesis, which states that individuals will costlessly sort themselves across local communities according to their public good preferences, is the workhorse of the local public finance literature. This paper develops a test of the Tiebout hypothesis using historical variation in mobility costs. Our extension of the Tiebout model to incorporate such costs yields the following comparative statics: as mobility costs fall, the heterogeneity across communities of individual public good preferences and, under some standard assumptions, of public good provision must (weakly) increase. Given mobility costs have fallen over time, a natural test of the Tiebout hypothesis is to take these predictions to the data here all US counties over the 1850-1990 period. Contrary to the predictions, we find decreasing heterogeneity between counties in policy outcomes (local education spending and total taxes or revenues) and in a wide variety of proxies for public good preferences (age groups, education levels, election outcomes, home ownership, income, race, and religious affiliation). Using the Boston SMSA as a case study, we show that the heterogeneity trends are similar at the municipal and county levels. These results suggest that forces working in opposition to Tiebout sorting have dominated individual location decisions over the past century.
Multijurisdictional economies, the Tiebout Hypothesis, …
WISDOM SUPREME | Tiebout Hypothesis
This study empirically extends the Tiebout hypothesis of âvoting with oneâs feetâ in two ways.
The Tiebout Hypothesis in the United States: An …
the tiebout hypothesis the Changing Composition of Boston Communities, 1960-1970.
An extension of the Tiebout hypothesis of voting with …
essay test sample questions towards a critique of the Tiebout Hypothesis.
A Historical Test of the Tiebout Hypothesis: Local ..
The Tiebout Hypothesis asserts that, when it is efficient to have multiple jurisdictions providing local public goods, then competition between jurisdictions for residents will lead to a near-optimal outcome. Research from cooperative game theory both provides a foundation for the hypothesis and extends the hypothesis to diverse situations where small groups of participants are effective.
An Extension of the Tiebout Hypothesis of Voting with …
The Tiebout Hypothesis () asserts that, in economic situations where it is optimal to have many jurisdictions offering competing packages of public goods, the movement of consumers to jurisdictions where their wants are best satisfied and competition between jurisdictions for residents will lead to near-optimal, “market-like” outcomes. A jurisdiction (or club) is a group of individuals who collectively provide public goods for themselves exclusively (the public goods are local). Tiebout also suggested that individuals would sort into taste-homogeneous jurisdictions.
Essays Acer IWhat is the Tiebout hypothesis? What are …
28, issue 2, 192-200Abstract:type="main" xml:lang="en"> This paper analyses the Tiebout hypothesis in Angola's provinces from 2004 to 2013, using a spatial panel data model.
View the Answer What is the Tiebout hypothesis
This article primarily reports on research interpreting and extending the Tiebout Hypothesis through cooperative game theory: in large economies with relatively small effective coalitions, there are outcomes in the core, that is, there are feasible states of the economy that cannot be improved upon by any coalition. (Note that a coalition may consist of many jurisdictions.) Moreover, the core has the equal treatment property—outcomes in the core do not discriminate between identical individuals, a “market-like” feature. When the effect of an individual on others is determined by his crowding type (his observable characteristics, including profession, appearance, age, gender, and lifestyle), the core dictates not only that identical individuals are treated identically but also that, in their interactions with others, individuals with the same crowding types are treated equally (–). These features all are in stark contrast to the situation with pure public goods (such as radio or national defense), for which relatively small jurisdictions are inefficient.
Tiebout's Sorting HypothesisUrban Affairs Review - …
The equivalence of the core and price-taking equilibrium outcomes provides another approach to interpreting the Tiebout Hypothesis. A brief list of results is presented.
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