Local government policies and migration

Abstract

Tiebout (1956) had suggested that local government policy differentials might exercise a major impact on individuals' locational decisions. The findings in this paper seem to support Tiebout's position. In particular, of the six results (coefficients) obtained in describing the migration-impact of local government policies, only two were not statistically significant determinants of migration. Of the remaining four coefficients, two were statistically significant at the five percent level and two were statistically significant at the one percent level. In addition, both white migrants and black migrants were affected by local government policy differentials. Thus, the diversity of local government economic policies exercises a profound impact on the spatial allocation of resources. A pertinent question to ask is “Does this impact of local government policy differentials on hyman migration lead to a significant misallocation of resources?” Clearly, unless the enormous diversity of policy differentials is very carefully and explicitly planned (so as to elicit a more desirable pattern of migration), the likelihood of a non-optimal (undesirable) migration-impact would seem frighteningly high. This would seem a matter warranting careful examination, but, alas, a matter beyond the immediate scope of this paper. Copyright Center for Study of Public Choice Virginia Polytechnic Institute and State University 1974