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Tiebout Bias and the Demand for Local Public Schooling

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Author Info
Rubinfeld, Daniel L
Shapiro, Perry
Roberts, Judith

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Abstract

Until recently, estimates of demand functions for public goods were obtained (either with aggregate or micro survey data) using single equation estimation techniques. However, demand estimates may be biased when in dividuals' choices of communities are dependent upon the quantity and quality of public good provided. This paper spells out the nature of this bias (called Tiebout bias) and suggests an improved maximum-likelihood estimation technique. The technique is applied to a data set involving local public education in Michigan. Copyright 1987 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 69 (1987)
Issue (Month): 3 (August)
Pages: 426-37
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Handle: RePEc:tpr:restat:v:69:y:1987:i:3:p:426-37

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  1. Dennis Epple & Thomas Romer & Holger Sieg, 1999. "The Tiebout Hypothesis and Majority Rule: An Empirical Analysis," NBER Working Papers 6977, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. 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," Working Papers 0502, Kenyon College, Department of Economics. [Downloadable!]
    Other versions:
  3. Eric J. Brunner & Stephen L. Ross, 2009. "Is the Median Voter Decisive? Evidence of 'Ends Against the Middle' From Referenda Voting Patterns," Working papers 2009-02, University of Connecticut, Department of Economics. [Downloadable!]
  4. Alberto Alesina & Reza Baqir & William Easterly, 1997. "Public Goods and Ethnic Divisions," NBER Working Papers 6009, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. John M. Clapp & Anupam Nanda & Stephen L. Ross, 2005. "Which School Attributes Matter? The Influence of School District Performance and Demographic Composition on Property Values," Working papers 2005-26, University of Connecticut, Department of Economics, revised Jan 2007. [Downloadable!]
    Other versions:
  6. Calabrese, Stephen & Epple, Dennis & Romer, Thomas & Sieg, Holger, 2005. "Local Public Good Provision: Voting, Peer Effects, and Mobility," Papers 10-04-2005, Princeton University, Research Program in Political Economy. [Downloadable!]
  7. Dennis Epple & Holger Sieg, 1998. "Estimating Equilibrium Models of Local Jurisdictions," NBER Working Papers 6822, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. David Brasington & Don Haurin, . "The Demand for Educational Quality: Comparing Estimates from a Median Voter Model with those from an Almost Ideal Demand System," Departmental Working Papers 2005-16, Department of Economics, Louisiana State University. [Downloadable!]
  9. Eric J. Brunner & Stephen L. Ross, 2007. "How Decisive Is the Decisive Voter?," Working papers 2007-28, University of Connecticut, Department of Economics, revised Aug 2008. [Downloadable!]
  10. Stephen Calabrese & Dennis Epple & Thomas Romer & Holger Sieg, 2005. "Local Public Good Provision: Voting, Peer Effects, and Mobility," NBER Working Papers 11720, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Åsa Ahlin & Eva Johansson, 2001. "Individual Demand for Local Public Schooling: Evidence from Swedish Survey Data," International Tax and Public Finance, Springer, vol. 8(4), pages 331-351, August. [Downloadable!] (restricted)
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  12. Alesina, Alberto F & La Ferrara, Eliana, 2000. "Who Trusts Others?," CEPR Discussion Papers 2646, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  13. David M. Brasington, . "School Choice and the Flight to Private Schools: To What Extent Are Public and Private Schools Substitutes?," Departmental Working Papers 2006-04, Department of Economics, Louisiana State University. [Downloadable!]
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  14. Caroline Minter Hoxby, 1994. "Does Competition Among Public Schools Benefit Students and Taxpayers?," NBER Working Papers 4979, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  15. Ozturk, Erdogan & Irwin, Elena G., 2001. "Explaining Household Location Choices Using A Spatial Probit Model," 2001 Annual meeting, August 5-8, Chicago, IL 20626, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  16. Ahlin, Åsa & Johansson, Eva, 2000. "Demand for Local Public Schooling: Another Brick in the Wall," Working Paper Series 2000:12, Uppsala University, Department of Economics. [Downloadable!]
    Other versions:
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