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Political Institutions and Sorting in a Tiebout Model

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

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.

Suggested Citation

  • Kollman, Ken & Miller, John H & Page, Scott E, 1997. "Political Institutions and Sorting in a Tiebout Model," American Economic Review, American Economic Association, vol. 87(5), pages 977-992, December.
    • Handle: RePEc:aea:aecrev:v:87:y:1997:i:5:p:977-92
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    Cited by:

    1. 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.
    2. Jean-Robert Tyran & Rupert Sausgruber, 2005. "The diffusion of policy innovations -an experimental investigation," Journal of Evolutionary Economics, Springer, vol. 15(4), pages 423-442, October.
    3. 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.
    4. John C. Butler & Jovan Grahovac, 2012. "Learning, Imitation, and the Use of Knowledge: A Comparison of Markets, Hierarchies, and Teams," Organization Science, INFORMS, vol. 23(5), pages 1249-1263, October.
    5. 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, vol. 31(10), pages 3427-3458, October.
    6. Robi Ragan, 2013. "Institutional sources of policy bias: A computational investigation," Journal of Theoretical Politics, , vol. 25(4), pages 467-491, October.
    7. Christian Martin & Michael Neugart, 2009. "Shocks and Endogenous Institutions: An Agent-based Model of Labor Market Performance in Turbulent Times," Computational Economics, Springer;Society for Computational Economics, vol. 33(1), pages 31-46, February.
    8. repec:ken:wpaper:0502 is not listed on IDEAS
    9. Betancourt, Roger & Gleason, Suzanne, 2000. "The Allocation of Publicly-Provided Goods to Rural Households in India: On Some Consequences of Caste, Religion and Democracy," World Development, Elsevier, vol. 28(12), pages 2169-2182, December.
    10. A. J. McGann, 2002. "The Advantages of Ideological Cohesion," Journal of Theoretical Politics, , vol. 14(1), pages 37-70, January.
    11. Martin Bodenstein & Heinrich Ursprung, 2005. "Political yardstick competition, economic integration, and constitutional choice in a federation:," Public Choice, Springer, vol. 124(3), pages 329-352, September.
    12. Revelli, Federico, 2019. "The electoral migration cycle," European Journal of Political Economy, Elsevier, vol. 59(C), pages 461-482.
    13. Thomas Holzer & Gerald Schneider & Thomas Widmer, 2000. "Discriminating Decentralization," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(2), pages 250-276, April.
    14. Alejandro Lee-Penagos, 2016. "Learning to Coordinate: Co-Evolution and Correlated Equilibrium," Discussion Papers 2016-11, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    15. Valery Makarov, 2007. "Application Of The Methodology Called "Artificial Societies," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 3(5), pages 19-26.
    16. Marco Casari, 2002. "Can genetic algorithms explain experimental anomalies? An application to common property resources," UFAE and IAE Working Papers 542.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    17. Feld, Lars P, 2000. "Tax Competition and Income Redistribution: An Empirical Analysis for Switzerland," Public Choice, Springer, vol. 105(1-2), pages 125-164, October.
    18. Elenna R. Dugundji & László Gulyás, 2013. "Structure and emergence in a nested logit model with social and spatial interactions," Computational and Mathematical Organization Theory, Springer, vol. 19(2), pages 151-203, June.
    19. Stephen J. DeCanio & Catherine Dibble & Keyvan Amir-Atefi, 2000. "The Importance of Organizational Structure for the Adoption of Innovations," Management Science, INFORMS, vol. 46(10), pages 1285-1299, October.

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