Polity Atlas
Theory

Tiebout model

Residents choosing among many local jurisdictions sort by their preferred mix of taxes and public goods — 'voting with their feet'.

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Source attached · not independently reviewedLast verified 2026-10-01 · revision 2 · 1 reviewersRevision historyЧитать на русском

Idea

If people can move freely between many local jurisdictions offering different packages of taxes and services, they will 'vote with their feet', and local public goods will be provided efficiently.

Theory

Charles Tiebout (1956) answered Samuelson's argument that public goods cannot be priced like private goods. The model assumes mobility, full information and no spillovers between jurisdictions.

Real examples

  • Residential sorting across US suburbs and school districts.
  • Competitive-governance arguments for charter cities and network states.

Critique

The assumptions rarely hold: moving is costly, information is imperfect and sorting can deepen segregation by income and race.

Results

Evidence of sorting and of tax-and-service differences being priced into housing exists; the efficiency claim remains a theory.

Related

Claims

EstablishedCLM-0015 · checked 2026-10-23

Tiebout argued that if people can move freely among many local jurisdictions, they will sort according to their preferred bundles of taxes and public goods.[1]

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Revision history

  1. 2026-10-23rev 2 — Seed import
  2. 2026-10-23rev 1 — Seed import