The Microfoundations of the Tiebout Model

Abstract

The authors extend the argument of the marginal consumer to show an important way in which the microlevel requirements of the Tiebout model can be met. They critique the existing literature on the microlevel requirements and argue that the way research has been conducted on the information about public goods possessed by citizens has been flawed in its theoretical presumptions. An alternative view is articulated in which citizens are viewed not to use "objective" information about tax service bundles that might be detectable in survey research but, instead, to use informational heuristics and proxies that permit them nonetheless to locate in jurisdictions that provide them with desired levels of public services.