Tiebout model

The Tiebout model, also known as Tiebout sorting, Tiebout migration, or Tiebout hypothesis, is a positive political theory model first described by economist Charles Tiebout in his article "A Pure Theory of Local Expenditures" (1956). The essence of the model is that there is in fact a non-political solution to the free rider problem in local governance. Specifically, competition across local jurisdictions places competitive pressures on the provision of local public goods such that these local governments are able to provide the optimal level of public goods.[1]

  1. ^ Gruber, Jonathan (2016). Public Finance and Public Policy (5th ed.). New York: Worth Publishers. ISBN 978-1-4641-4333-5.

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