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The Dynamic Implications of the Tiebout Model: the Changing Composition of Boston Communities, 1960-1970

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  • W.Norton Grubb

    (School of Public Affairs University of Texas at Austin)

Abstract

The Tiebout model implies, under certain assumptions, that communities will become increasingly homogeneous by income and preferences, and perhaps by race, land use, and other community characteristics. This article tests the hypothesis of increasing homogeneity with equations describing changes among Boston area communities between 1960 and 1970. The results confirm increasing segregation by income and (much more weakly) segregation by age, but other community characteristics show no distinct trend. The system of equations is used to forecast community characteristics, and these projections confirm a tendency toward greater inequality in public spending. The results imply that the Pareto-optimality of the Tiebout model will not be attained and that any efficiencies may come at the expense of greater inequities.

Suggested Citation

  • W.Norton Grubb, 1982. "The Dynamic Implications of the Tiebout Model: the Changing Composition of Boston Communities, 1960-1970," Public Finance Review, , vol. 10(1), pages 17-38, January.
    • Handle: RePEc:sae:pubfin:v:10:y:1982:i:1:p:17-38
    DOI: 10.1177/109114218201000102
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    References listed on IDEAS

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    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
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    5. Flatters, Frank & Henderson, Vernon & Mieszkowski, Peter, 1974. "Public goods, efficiency, and regional fiscal equalization," Journal of Public Economics, Elsevier, vol. 3(2), pages 99-112, May.
    6. Edel, Matthew & Sclar, Elliott, 1974. "Taxes, Spending, and Property Values: Supply Adjustment in a Tiebout-Oates Model," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 941-954, Sept./Oct.
    7. Buchanan, James M. & Goetz, Charles J., 1972. "Efficiency limits of fiscal mobility: An assessment of the tiebout model," Journal of Public Economics, Elsevier, vol. 1(1), pages 25-43, April.
    8. Meadows, George Richard, 1976. "Taxes, Spending, and Property Values: A Comment and Further Results," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 869-880, August.
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    Cited by:

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    3. Grosskopf, Shawna & Hayes, Kathy J. & Taylor, Lori L. & Weber, William L., 2001. "On the Determinants of School District Efficiency: Competition and Monitoring," Journal of Urban Economics, Elsevier, vol. 49(3), pages 453-478, May.
    4. Bollinger, Christopher R. & Ihlanfeldt, Keith R., 1997. "The Impact of Rapid Rail Transit on Economic Development: The Case of Atlanta's MARTA," Journal of Urban Economics, Elsevier, vol. 42(2), pages 179-204, September.
    5. Dawkins, Casey J., 2005. "Tiebout choice and residential segregation by race in US metropolitan areas, 1980-2000," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 734-755, November.
    6. Heikkila, Eric J., 1996. "Are municipalities Tieboutian clubs?," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 203-226, April.

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