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Intra-city Tiebout: the economic consequences of crossed borders

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  • Steven G. Craig

    (University of Houston)

  • Edward C. Hoang

    (University of Colorado Colorado Springs)

Abstract

This paper examines a new element of the Tiebout process, which is whether Tiebout mobility impacts the organization of residents and firms within a single metropolitan area. Unemployment insurance (UI) is a state-wide policy. We therefore examine whether variation in UI policy outcomes causes firms and residents to alter their locations within the local urban economy. Our empirical process is to use a matching pairs regression discontinuity design based on the nine largest cities where state boundaries cross the metropolitan area. We find that Tiebout mobility results from the UI wage replacement rate, the UI eligibility rate, and UI taxes.

Suggested Citation

  • Steven G. Craig & Edward C. Hoang, 2024. "Intra-city Tiebout: the economic consequences of crossed borders," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(3), pages 1005-1043, October.
    • Handle: RePEc:spr:anresc:v:73:y:2024:i:3:d:10.1007_s00168-024-01279-w
    DOI: 10.1007/s00168-024-01279-w
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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