Banzhaf, H. Spencer; Walsh, Randall P. - In: American Economic Review 98 (2008) 3, pp. 843-63
Charles Tiebout's suggestion that people "vote with their feet" for communities with optimal bundles of taxes and public goods has played a central role in local public finance for over 50 years. Using a locational equilibrium model, we derive formal tests of his premise. The model predicts...