Innocenti, Alessandro; Rapallini, Chiara - In: Giornale degli Economisti 70 (2011) 1, pp. 3-24
This paper provides laboratory evidence on the efficiency-enhancing properties of the Tiebout model as a decentralized system of public goods provision. Tiebout (1956) shows that if a sufficient number of local communities exist to accommodate different types of preferences, individuals sort...