Assessing the Micro-Foundations of the Tiebout Model

Abstract

In this article, we seek to shed light on the micro-foundations of the Tiebout model. We use a survey of respondents in four of the largest United States metropolitan areas to analyze factors that contribute to households' exiting behavior. In this analysis, we explore the types of reasons likely movers offer to explain a potential move. The analysis incorporates variables measuring Tiebout factors and variables drawn from two important alternative explanations that have been discussed widely in political science in recent years. Our findings generally support a Tiebout explanation: Evaluations of core municipal services are found to be the strongest determinant of the likelihood to move. Moreover, variables drawn from alternative explanations, including race, family income, and social capital, are found to be either unrelated to the decision to move or to have the opposite effect on the likelihood of moving from what would be expected.