Title | State Fiscal Institutions and Empty-Nest Migration: Are Tiebout voters hobbled? |
Publication Type | Journal Article |
Year of Publication | 2006 |
Authors | Farnham, MP, Sevak, P |
Journal | Journal of Public Economics |
Volume | 90 |
Issue | 3 |
Pagination | 407 -427 |
Keywords | Demographics, Methodology, Public Policy |
Abstract | Using the Health and Retirement Study and a national panel of local fiscal data, we test a lifecycle model of Tiebout sorting. On average, cross-state, empty-nest movers-presumed to be out of fiscal equilibrium-experience large fiscal gains in the form of reduced exposure to local school spending and property taxes, while local empty-nest movers experience no fiscal adjustment. We find evidence that within-state fiscal adjustment is constrained by state institutions that limit local discretion. Empty-nest households moving within states with school finance equalization do not engage in Tiebout-consistent fiscal adjustment, while those moving within states lacking school finance equalization adjust substantially. (c) 2005 Elsevier B.V. All rights reserved. |
Notes | Article English |
DOI | 10.1016/j.jpubeco.2005.07.005 |
Endnote Keywords | Tiebout hypothesis/taxation/migration/state and local government |
Endnote ID | 15850 |
Citation Key | 7076 |