Assessing the Importance of Tiebout Sorting: Local Heterogeneity from 1850 to 1990

S-Tier
Journal: American Economic Review
Year: 2003
Volume: 93
Issue: 5
Pages: 1648-1677

Authors (2)

Paul W. Rhode (University of Michigan) Koleman S. Strumpf (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper argues that long-run trends in geographic segregation are inconsistent with models where residential choice depends solely on local public goods (the Tiebout hypothesis). We develop an extension of the Tiebout model that predicts as mobility costs fall, the heterogeneity across communities of individual public good preferences and of public good provision must (weakly) increase. Given the secular decline in mobility costs, these predictions can be evaluated using historical data. We find decreasing heterogeneity in policies and proxies for preferences across (i) a sample of U.S. municipalities (1870-1990); (ii) all Boston-area municipalities (1870-1990); and (iii) all U.S. counties (1850-1990).

Technical Details

RePEc Handle
repec:aea:aecrev:v:93:y:2003:i:5:p:1648-1677
Journal Field
General
Author Count
2
Added to Database
2026-01-29