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Political Institutions and Sorting in a Tiebout Model

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  • Kollman, Ken
  • Miller, John H
  • Page, Scott E
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    Abstract

    The authors construct a computational model of Tiebout competition and show that political institutions differ in their ability to sort citizens effectively. In particular, they find that certain types of institutions--those that become more 'politically unstable' as citizen heterogeneity increases--perform relatively poorly given a single jurisdiction, yet these same institutions perform relatively well when there are multiple jurisdictions. The authors provide an explanation for this phenomenon which draws upon simulated annealing, a discrete nonlinear search algorithm. Copyright 1997 by American Economic Association.

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    Bibliographic Info

    Article provided by American Economic Association in its journal American Economic Review.

    Volume (Year): 87 (1997)
    Issue (Month): 5 (December)
    Pages: 977-92

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    Handle: RePEc:aea:aecrev:v:87:y:1997:i:5:p:977-92

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    Cited by:
    1. Martin Bodenstein & Heinrich Ursprung, 2001. "Political Yardstick Competition, Economic Integration, and Constitutional Choice in a Federation," CESifo Working Paper Series 501, CESifo Group Munich.
    2. Page, Scott E. & Tassier, Troy, 2007. "Why chains beget chains: An ecological model of firm entry and exit and the evolution of market similarity," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 31(10), pages 3427-3458, October.
    3. Marco Casari, 2002. "Can genetic algorithms explain experimental anomalies? An application to common property resources," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 542.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    4. Conley, John P. & Wooders, Myrna H., 2001. "Tiebout Economies with Differential Genetic Types and Endogenously Chosen Crowding Characteristics," Journal of Economic Theory, Elsevier, vol. 98(2), pages 261-294, June.
    5. Valery Makarov, 2007. "Application Of The Methodology Called "Artificial Societies," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), Economic Laboratory for Transition Research (ELIT), vol. 3(5), pages 19-26.
    6. Keith Brouhle & Jay Corrigan & Rachel Croson & Martin Farnham & Selhan Garip & Luba Habodaszova & Laurie Tipton Johnson & Martin Johnson & David Reiley, 2005. "Local Residential Sorting and Public Goods Provision: A Classroom Demonstration," The Journal of Economic Education, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(4), pages 332-341, October.
    7. J. Barkley Rosser, 1999. "On the Complexities of Complex Economic Dynamics," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 169-192, Fall.
    8. Roger R. Betancourt & Suzanne Gleason, 1999. "The Allocation of Publicly-Provided Goods to Rural Households in India: On Some Consequences of Caste, Religion and Democracy," Electronic Working Papers, University of Maryland, Department of Economics 99-004, University of Maryland, Department of Economics.
    9. Christian Martin & Michael Neugart, 2009. "Shocks and Endogenous Institutions: An Agent-based Model of Labor Market Performance in Turbulent Times," Computational Economics, Society for Computational Economics, Society for Computational Economics, vol. 33(1), pages 31-46, February.
    10. Jean-Robert Tyran & Rupert Sausgruber, 2003. "The Diffusion of Policy Innovations. An Experimental Investigation," University of St. Gallen Department of Economics working paper series 2003 2003-14, Department of Economics, University of St. Gallen.
    11. Feld, Lars P, 2000. " Tax Competition and Income Redistribution: An Empirical Analysis for Switzerland," Public Choice, Springer, Springer, vol. 105(1-2), pages 125-64, October.

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