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Do People Vote with Their Feet? An Empirical Test of Tiebout

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  • H. Spencer Banzhaf
  • Randall P. Walsh

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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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.98.3.843
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File URL: http://www.aeaweb.org/aer/data/june08/20060190_data.zip
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Bibliographic Info

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

Volume (Year): 98 (2008)
Issue (Month): 3 (June)
Pages: 843-63

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Handle: RePEc:aea:aecrev:v:98:y:2008:i:3:p:843-63

Note: DOI: 10.1257/aer.98.3.843
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Voting with your feet
    by Economic Logician in Economic Logic on 2008-09-26 14:17:00
  2. ¿Vota la gente con los pies?
    by Adrián Ravier in Punto de Vista Economico on 2012-07-08 15:21:08
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Janet Currie, 2011. "Ungleichheiten bei der Geburt: Einige Ursachen und Folgen," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 42-65, 05.
  2. H. Spencer Banzhaf & Randall P. Walsh, 2010. "Segregation and Tiebout Sorting: Investigating the Link between Investments in Public Goods and Neighborhood Tipping," NBER Working Papers 16057, National Bureau of Economic Research, Inc.
  3. Joshua Graff Zivin & Matthew Neidell, 2013. "Environment, Health, and Human Capital," NBER Working Papers 18935, National Bureau of Economic Research, Inc.
  4. Abbott, Joshua K. & Klaiber, H. Allen, 2011. "The Value Of Water As An Urban Club Good: A Matching Approach To Hoa-Provided Lakes," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103781, Agricultural and Applied Economics Association.
  5. Meredith Fowlie & Stephen P. Holland & Erin T. Mansur, 2012. "What Do Emissions Markets Deliver and to Whom? Evidence from Southern California's NOx Trading Program," American Economic Review, American Economic Association, vol. 102(2), pages 965-93, April.
  6. Nathaniel Baum-Snow & Byron Lutz, 2008. "School desegregation, school choice and changes in residential location patterns by race," Finance and Economics Discussion Series 2008-57, Board of Governors of the Federal Reserve System (U.S.).
  7. Janet Currie & W. Reed Walker, 2009. "Traffic Congestion and Infant Health: Evidence from E-ZPass," NBER Working Papers 15413, National Bureau of Economic Research, Inc.
  8. Martin Halla & Friedrich Schneider & Alexander Wagner, 2013. "Satisfaction with democracy and collective action problems: the case of the environment," Public Choice, Springer, vol. 155(1), pages 109-137, April.
  9. Agarwal, Nikhil & Banternghansa, Chanont & Bui, Linda T.M., 2010. "Toxic exposure in America: Estimating fetal and infant health outcomes from 14 years of TRI reporting," Journal of Health Economics, Elsevier, vol. 29(4), pages 557-574, July.
  10. Nikhil Agarwal & Chanont Banternghansa & Linda T.M. Bui, 2009. "Toxic exposure in America: estimating fetal and infant health outcomes," Working Papers 2009-016, Federal Reserve Bank of St. Louis.
  11. Partridge, Mark D. & Rickman, Dan S., 2012. "Integrating regional economic development analysis and land use economics," MPRA Paper 38291, University Library of Munich, Germany.
  12. Byron F. Lutz, 2009. "Fiscal amenities, school finance reform and the supply side of the Tiebout market," Finance and Economics Discussion Series 2009-18, Board of Governors of the Federal Reserve System (U.S.).
  13. Robert Deacon & Felix Schläpfer, 2010. "The Spatial Range of Public Goods Revealed Through Referendum Voting," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 47(3), pages 305-328, November.

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  1. Economic Logic blog

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