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Private Schooling and the Tiebout Hypothesis

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  • Jorge Martinez-Vazquez
  • Bruce A. Seaman

Abstract

This article develops an alternative to both the capitalization and the “heterogeneity†tests of the Tiebout hypothesis. By examining the implication that the greater the degree of public school choice in a metro area the lesser should be the reliance on private schooling, additional and novel support is found for the hypothesis. Specifically, interjurisdictional choice linked to the number of school districts, and intrajurisdictional choice as reflected by the number of individual schools per district both were found to be important dimensions of school choice. That the Tiebout process is operational at the SMSA level of aggregation also suggests that the net fiscal gains from mobility are relevant to both central city and suburban dwellers.

Suggested Citation

  • Jorge Martinez-Vazquez & Bruce A. Seaman, 1985. "Private Schooling and the Tiebout Hypothesis," Public Finance Review, , vol. 13(3), pages 293-318, July.
    • Handle: RePEc:sae:pubfin:v:13:y:1985:i:3:p:293-318
    DOI: 10.1177/109114218501300304
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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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    4. Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-560, June.
    5. Chi-Yuan Tsai, 1982. "Taxes and residential choice," Public Choice, Springer, vol. 38(1), pages 55-72, March.
    6. Eberts, Randall W. & Gronberg, Timothy J., 1981. "Jurisdictional homogeneity and the Tiebout hypothesis," Journal of Urban Economics, Elsevier, vol. 10(2), pages 227-239, September.
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    10. Reschovsky, Andrew, 1979. "Residential choice and the local public sector: An alternative test of the "Tiebout Hypothesis"," Journal of Urban Economics, Elsevier, vol. 6(4), pages 501-520, October.
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    Cited by:

    1. Dee, Thomas S., 1998. "Competition and the quality of public schools," Economics of Education Review, Elsevier, vol. 17(4), pages 419-427, October.
    2. Matthew N. Murray & Sally Wallace, 1997. "The Implications of Expanded School Choice," Public Finance Review, , vol. 25(5), pages 459-473, September.
    3. Amy B. Schmidt, 1992. "Private School Enrollment in Metropolitan Areas," Public Finance Review, , vol. 20(3), pages 298-320, July.
    4. Michael Marlow, 1997. "Public education supply and student performance," Applied Economics, Taylor & Francis Journals, vol. 29(5), pages 617-626.
    5. Thomas A. Downes, 1996. "Do Differences in Heterogeneity and Intergovernmental Competition Help Explain Variation in the Private School Share? Evidence From Early California Statehood," Public Finance Review, , vol. 24(3), pages 291-318, July.
    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.
    7. Jimenez, Emmanuel & Sawada, Yasuyuki, 2001. "Public for private: the relationship between public and private school enrollment in the Philippines," Economics of Education Review, Elsevier, vol. 20(4), pages 389-399, August.
    8. Goldhaber, Dan, 1999. "An Endogenous Model of Public School Expenditures and Private School Enrollment," Journal of Urban Economics, Elsevier, vol. 46(1), pages 106-128, July.
    9. Oliver Himmler, 2009. "The Effects of School Competition on Academic Achievement and Grading Standards," CESifo Working Paper Series 2676, CESifo.
    10. Marlow, Michael L., 1999. "Spending, school structure, and public education quality. Evidence from California," Economics of Education Review, Elsevier, vol. 19(1), pages 89-106, February.
    11. Shawna Grosskopf & Kathy J. Hayes & Lori L. Taylor & William Weber, 1995. "On competition and school efficiency," Working Papers 9506, Federal Reserve Bank of Dallas.
    12. Buddin, Richard J. & Cordes, Joseph J. & Kirby, Sheila Nataraj, 1998. "School Choice in California: Who Chooses Private Schools?," Journal of Urban Economics, Elsevier, vol. 44(1), pages 110-134, July.

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