Monday, December 27, 2010

Tiebout Confirmed

A few days ago I did a post on the Census data arguing that the Tiebout hypothesis lives.  The New York Post, being a bit more graphic in their design than I, did a story covered in TaxProfBlog which illustrates the point.

People do vote with their feet when it comes to government services and taxes.  That was the central message of "A Pure Theory of Local Expenditure." (Tiebout's hypothesis - see the earlier post to read the article.)

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