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Community choice and local public services: A discrete choice approach

  • Nechyba, Thomas J.
  • Strauss, Robert P.

This paper uses a discrete choice approach to estimate the impact of local fiscal and other variables on individual community choices. It employs a combination of a unique micro data set composed of ninety percent of all homeowners in six school districts in Camden County, New Jersey and information on local community characteristics including local crime rates, commercial activity and distance from a metropolitan area. The empirical model implies that all these variables as well as the local per pupil spending on public education and community entry prices' play a major part in explaining the location of individual households. Estimates of elasticities of the probabilities of a representative individual choosing a particular community with respect to the various variables are calculated and discussed.

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Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 28 (1998)
Issue (Month): 1 (January)
Pages: 51-73

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Handle: RePEc:eee:regeco:v:28:y:1998:i:1:p:51-73
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  3. Nechyba, Thomas J, 1997. "Local Property and State Income Taxes: The Role of Interjurisdictional Competition and Collusion," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 351-84, April.
  4. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
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  6. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-40, September.
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  8. Pollakowski, Henry O, 1973. "The Effects of Property Taxes and Local Public Spending on Property Values: A Comment and Further Results," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 994-1003, July-Aug..
  9. Witte, Ann D & Sumka, Howard J & Erekson, Homer, 1979. "An Estimate of a Structural Hedonic Price Model of the Housing Market: An Application of Rosen's Theory of Implicit Markets," Econometrica, Econometric Society, vol. 47(5), pages 1151-73, September.
  10. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February.
  11. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
  12. Oates, Wallace E, 1969. "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 957-71, Nov./Dec..
  13. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  14. 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 941-54, Sept./Oct.
  15. Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers 477, Cowles Foundation for Research in Economics, Yale University.
  16. Boehm, Thomas P & Herzog, Henry W, Jr & Schlottmann, Alan M, 1991. "Intra-urban Mobility, Migration, and Tenure Choice," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 59-68, February.
  17. Lee, Lung-Fei & Trost, Robert P., 1978. "Estimation of some limited dependent variable models with application to housing demand," Journal of Econometrics, Elsevier, vol. 8(3), pages 357-382, December.
  18. Ellickson, Bryan, 1981. "An alternative test of the hedonic theory of housing markets," Journal of Urban Economics, Elsevier, vol. 9(1), pages 56-79, January.
  19. Fisch, Oscar, 1977. "Spatial equilibrium with local public goods : Urban land rent, optimal city size and the Tiebout hypothesis," Regional Science and Urban Economics, Elsevier, vol. 7(3), pages 197-216, August.
  20. Thomas J. Nechyba, 1996. "Public School Finance in a General Equilibrium Tiebout World: Equalization Programs, Peer Effects and Private School Vouchers," NBER Working Papers 5642, National Bureau of Economic Research, Inc.
  21. Epple, Dennis & Zelenitz, Allan & Visscher, Michael, 1978. "A Search for Testable Implications of the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 86(3), pages 405-25, June.
  22. Anas, Alex & Chu, Chaushie, 1984. "Discrete choice models and the housing price and travel to work elasticities of location demand," Journal of Urban Economics, Elsevier, vol. 15(1), pages 107-123, January.
  23. King, A Thomas, 1977. "Estimating Property Tax Capitalization: A Critical Comment," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 425-31, April.
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  25. Eric A. Hanushek & John M. Quigley, 1978. "An Explicit Model of Intra-Metropolitan Mobility," Land Economics, University of Wisconsin Press, vol. 54(4), pages 411-429.
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