Tiebout model

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Revision as of 19:54, 5 May 2024
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# An optimal city size exists.# An optimal city size exists.
# Communities try to achieve "optimal size".# Communities try to achieve "optimal size".
==Limitations==
# Requires equal financing of the public good by all the residents (a lump sum tax) which is viewed as highly inequitable
# Towns typically finance their public goods instead through a property tax that is levied in proportion to the value of homes. The problem that this property taxation causes is that the poor chase the rich. Richer people pay a larger share of the public goods bill than do poorer people, so people who value those goods would like to live in a community with people richer than they are.
==Factors determining optimal level of decentralisation====Factors determining optimal level of decentralisation==

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