NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Tiebout Hypothesis and Majority Rule: An Empirical Analysis

Dennis Epple, Thomas Romer, Holger Sieg

NBER Working Paper No. 6977
Issued in February 1999
NBER Program(s):   PE

The paper provides a comprehensive empirical analysis of majority rule and Tiebout sorting within a system of local jurisdictions. The idea behind the estimation procedure is to investigate whether observed levels of public expenditures satisfy necessary conditions implied by majority rule in a general equilibrium model of residential choice. The estimator controls for both observed and unobserved heterogeneity among households, observed and unobserved characteristics of communities, the potential endogeneity of prices and expenditures as well as the self-selection of households into communities of their choice. We estimate the structural parameters of the model using data from the Boston Metropolitan Area. The empirical findings are by and large supportive of our approach.

download in pdf format
   (349 K)

email paper

This paper is available as PDF (349 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w6977

Published: A revision of this paper was published as: “Interjurisdictional Sorting and Majority Rule: An Empirical Analysis,� D. Epple, T. Romer and H. Sieg, Econometrica, November 2001.

Users who downloaded this paper also downloaded these:
Rhode and Strumpf w7946 A Historical Test of the Tiebout Hypothesis: Local Heterogeneity from 1850 to 1990
Epple and Sieg w6822 Estimating Equilibrium Models of Local Jurisdictions
Calabrese, Epple, Romer, and Sieg w11720 Local Public Good Provision: Voting, Peer Effects, and Mobility
Banzhaf and Walsh w16057 Segregation and Tiebout Sorting: Investigating the Link between Investments in Public Goods and Neighborhood Tipping
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us