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The Political Economy of City Formation in California: Limits to Tiebout Sorting

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  • Juliet Ann Musso

Abstract

Objective. This paper analyzes the extent to which voter behavior in city formation elections supports Tiebout's (1956) hypothesis that residential sorting facilitates efficiency of local service provision. It develops a two‐stage model of city formation to distinguish agenda setting from voter outcomes on city formation proposals. Methods. Logit analysis is used to analyze voting in 71 city formation elections, incorporating Heckman's two‐stage procedure to correct for self‐selection of local referenda. Results. Community fiscal and demographic factors influence agenda setting more than voting behavior. Wealthier communities in high‐growth counties are more likely to propose formation of a city. In contrast, community characteristics have little influence on electoral outcomes, suggesting that boundedly rational voters rely on information heuristics. Conclusions. Although reduction of diversity did not appear to motivate city formation, sorting around residential income, land use preferences, and other demographic variables may facilitate relative efficiency of service provision.

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  • Juliet Ann Musso, 2001. "The Political Economy of City Formation in California: Limits to Tiebout Sorting," Social Science Quarterly, Southwestern Social Science Association, vol. 82(1), pages 139-153, March.
    • Handle: RePEc:bla:socsci:v:82:y:2001:i:1:p:139-153
    DOI: 10.1111/0038-4941.00013
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    Cited by:

    1. Juan Luis Gómez-Reino & Jorge Martinez-Vazquez, 2013. "An international perspective on the determinants of local government fragmentation," Chapters, in: Santiago Lago-Peñas & Jorge Martinez-Vazquez (ed.), The Challenge of Local Government Size, chapter 2, pages 8-54, Edward Elgar Publishing.
    2. Juan Luis Gómez-Reino & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2021. "Evidence on Economies of Scale in Local Public Service Provision: A Meta-Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper2116, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Lawrence Kenny & Adam Reinke, 2011. "The role of income in the formation of new cities," Public Choice, Springer, vol. 149(1), pages 75-88, October.
    4. Collin D. Hodges & Heather M. Stephens, 2022. "Does municipal incorporation always increase property values?," Growth and Change, Wiley Blackwell, vol. 53(1), pages 200-220, March.
    5. Agustin Leon-Moreta, 2015. "Municipal incorporation in the United States," Urban Studies, Urban Studies Journal Limited, vol. 52(16), pages 3160-3180, December.

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