Tiebout jurisdictions and clubs

Todd Sandler

The Annals of Regional Science, 2024, vol. 73, issue 3, No 2, 857-872

Abstract: Abstract In celebration of the centennial of the birth of Charles M. Tiebout, the current essay establishes the Tiebout hypothesis regarding jurisdictional composition as an origin of club theory and the study of local public goods. The Tiebout hypothesis and club theory constitute two of many foundational contributions to public choice. Tiebout’s voting-with-the-feet analysis exerts a lasting influence on empirical investigations in urban and regional economics regarding city size, regional composition, housing price capitalization, and migration patterns. The current paper displays three fundamental club models to establish an unmistakable linkage between the Tiebout hypothesis and club theory. Given that linkage, the paper also identifies essential differences between the two analyses. Myriad applications of club theory to virtually all fields of economics highlight Tiebout’s far-reaching legacy.

JEL-codes: H41 H72 R23 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s00168-023-01229-y

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