IDEAS home Printed from https://ideas.repec.org/p/ken/wpaper/0502.html
   My bibliography  Save this paper

Local Residential Sorting and Public Goods Provision: A Classroom Demonstration

Author

Listed:
  • Keith Brouhle
  • Jay Corrigan
  • Rachel Croson
  • Martin Farnham
  • Selhan Garip
  • Luba Habodaszova
  • Laurie Tipton Johnson
  • Martin Johnson
  • David Reiley

Abstract

This classroom exercise illustrates the Tiebout (1956) hypothesis that residential sorting across multiple jurisdictions leads to a more efficient allocation of local public goods. The exercise places students with heterogeneous preferences over a public good into a single classroom community. A simple voting mechanism determines the level of public good provision in the community. Next the classroom is divided in two, and students may choose to move between the two smaller communities, sorting themselves according to their preferences for public goods. The exercise places a cost on movement at first, then allows for costless sorting. Students have the opportunity to observe how social welfare rises through successive rounds of the exercise, as sorting becomes more complete. One may also observe how immobile individuals can become worse off because of incomplete sorting when the Tiebout assumptions do not hold perfectly.

Suggested Citation

  • Keith Brouhle & Jay Corrigan & Rachel Croson & Martin Farnham & Selhan Garip & Luba Habodaszova & Laurie Tipton Johnson & Martin Johnson & David Reiley, 2005. "Local Residential Sorting and Public Goods Provision: A Classroom Demonstration," Working Papers 0502, Kenyon College, Department of Economics.
  • Handle: RePEc:ken:wpaper:0502
    as

    Download full text from publisher

    File URL: http://economics.kenyon.edu/corrigan/publications/LPG%20Paper%20%28JEE%20Final%29.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mieszkowski, Peter & Zodrow, George R, 1989. "Taxation and the Tiebout Model: The Differential Effects of Head Taxes, Taxes on Land Rents, and Property Taxes," Journal of Economic Literature, American Economic Association, vol. 27(3), pages 1098-1146, September.
    2. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
    3. John D. Donahue, 1997. "Tiebout? Or Not Tiebout? The Market Metaphor and America's Devolution Debate," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 73-81, Fall.
    4. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    5. repec:cup:apsrev:v:87:y:1993:i:03:p:702-713_10 is not listed on IDEAS
    6. repec:cup:apsrev:v:89:y:1995:i:03:p:705-709_09 is not listed on IDEAS
    7. Theodore Groves & John Ledyard, 1977. "Some limitations of demand revelaing processes," Public Choice, Springer, vol. 29(2), pages 107-124, March.
    8. repec:cup:apsrev:v:83:y:1989:i:03:p:711-728_08 is not listed on IDEAS
    9. Rubinfeld, Daniel L & Shapiro, Perry & Roberts, Judith, 1987. "Tiebout Bias and the Demand for Local Public Schooling," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 426-437, August.
    10. Kollman, Ken & Miller, John H & Page, Scott E, 1997. "Political Institutions and Sorting in a Tiebout Model," American Economic Review, American Economic Association, vol. 87(5), pages 977-992, December.
    11. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
    12. Brueckner, Jan K., 2000. "A Tiebout/tax-competition model," Journal of Public Economics, Elsevier, vol. 77(2), pages 285-306, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    classroom experiments; public goods; residential sorting; Tiebout hypothesis.;

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ken:wpaper:0502. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jay Corrigan). General contact details of provider: http://edirc.repec.org/data/edkenus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.