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An alternate test of the Tiebout hypothesis

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  • Vincent Munley

Abstract

This paper has presented an indirect test of the Tiebout hypothesis that does not require explicit consideration of the interaction between the markets for housing and local public services. The results suggest that, at least in the case of elementary and secondary education, when allowed to choose from a selection of jurisdictions, individuals locate so as to minimize the allocative inefficiency that results from collective provision of local services. The results obtained here may offer some insight toward understanding why the median voter model performed so well in at least one recent empirical examination. In addition to Holcombe's positive findings, Inman (1978) has provided evidence that the median voter is decisive in budgetary politics. The later test was based on data for 58 Long Island school districts. The analysis presented here suggests that with so plentiful a selection of districts in one suburban area, the frequency distribution of voter demand should be quite narrowly dispersed in each district. It is not surprising, therefore, that the actual level of expenditure conforms closely to that demanded by the voter with the median income. Copyright Martinus Nijhoff Publishers 1982

Suggested Citation

  • Vincent Munley, 1982. "An alternate test of the Tiebout hypothesis," Public Choice, Springer, vol. 38(2), pages 211-217, January.
    • Handle: RePEc:kap:pubcho:v:38:y:1982:i:2:p:211-217
    DOI: 10.1007/BF00127722
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    References listed on IDEAS

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    1. 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 957-971, Nov./Dec..
    2. 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 405-425, June.
    3. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    4. Holcombe, Randall G, 1980. "An Empirical Test of the Median Voter Model," Economic Inquiry, Western Economic Association International, vol. 18(2), pages 260-274, April.
    5. Barlow, Robin, 1970. "Efficiency Aspects of Local School Finance," Journal of Political Economy, University of Chicago Press, vol. 78(5), pages 1028-1040, Sept.-Oct.
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    Cited by:

    1. Roger Hewett & Charles A. Holt & Georgia Kosmopoulou & Christine Kymn & Cheryl X. Long & Shabnam Mousavi & Sudipta Sarangi, 2005. "A Classroom Exercise: Voting by Ballots and Feet," Southern Economic Journal, John Wiley & Sons, vol. 72(1), pages 253-263, July.
    2. Jorge Martinez-Vazquez & Bruce A. Seaman, 1985. "Private Schooling and the Tiebout Hypothesis," Public Finance Review, , vol. 13(3), pages 293-318, July.
    3. Tugrul Gurgur, 2016. "Voice, exit and local capture in public provision of private goods," Economics of Governance, Springer, vol. 17(4), pages 397-424, November.
    4. Shawna Grosskopf & Kathy J. Hayes & Lori L. Taylor & William Weber, 1995. "On competition and school efficiency," Working Papers 9506, Federal Reserve Bank of Dallas.
    5. Keith Dowding & Peter John & Stephen Biggs, 1994. "Tiebout : A Survey of the Empirical Literature," Urban Studies, Urban Studies Journal Limited, vol. 31(4-5), pages 767-797, May.
    6. 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.

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