Center for Spatially Integrated Social Science
Charles M. Tiebout, A Pure Theory of Local Expenditures, 1956. CSISS Classics
- Author(s): Stoddard, Chris
- Editor(s): Janelle, Donald
- et al.
The Tiebout Hypothesis is that individuals reveal their preferences for high or low public services (and related high/low taxes) by "voting with their feet." Competition among jurisdictions results in homogeneous communities, with residents that all value public services similarly, such that, in equilibrium, no individual can be made better off by moving, and the market is efficient.