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American Economic Review: Vol. 98 No. 3 (June 2008)
AER Volume. 98, Issue 3 | 
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Do People Vote with Their Feet? An Empirical Test of Tiebout
Article Citation
Banzhaf, H. Spencer, and
Randall P. Walsh. 2008. "Do People Vote with Their Feet? An Empirical Test of Tiebout."
American Economic Review,
98(3): 843-63.
DOI: 10.1257/aer.98.3.843
DOI: 10.1257/aer.98.3.843
Abstract
Charles Tiebout's suggestion that people "vote with their feet" for
communities with optimal bundles of taxes and public goods has played a
central role in local public finance for over 50 years. Using a locational
equilibrium model, we derive formal tests of his premise. The model
predicts increased population density in neighborhoods experiencing
exogenous improvements in public goods and, for large improvements,
increased relative mean incomes. We test these hypotheses in the context
of changing air quality. Our results provide strong empirical support for
the notion that households "vote with their feet" for environmental
quality.
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Authors
Banzhaf, H. Spencer (GA State U)
Walsh, Randall P. (U CO)
Walsh, Randall P. (U CO)
JEL Classifications
D72: Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
H41: Public Goods
H73: State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects
Q53: Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
H41: Public Goods
H73: State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects
Q53: Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
