MARKET MODELS OF LOCAL-GOVERNMENT - EXIT, VOTING, AND THE LAND MARKET

This paper explores linkages between exit, voting, and the land market that are central to the study of local politics. It raises new questions about the desirability of Tiebout-type governmental structures. Decentralized political and locational choice may not produce an equilibrium solution, and when an equilibrium does exist, the outcome will be dependent upon the historical accidents of community size. The effect of migration on public choices depends on the preferences and incomes of migrants, on the production function for public services, and on the price of land. Migration may lead to public choices that generate more migration in the same or the opposite direction. © 1979.