Question: Rhode and Strumpf 2003 evaluated a century of historical evidence

Rhode and Strumpf (2003) evaluated a century of historical evidence to investigate the impact of changes in moving costs within the Tiebout model.
a. What does the Tiebout model predict should happen to the similarity of residents within a community as the costs of moving fall?
b. Rhode and Strumpf found that while mobility costs have steadily fallen, the differences in public good provision across communities have fallen as well. DoesTiebout sorting explain this homogenization of public good provision, or must other factors have played a larger role? Explain.

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  • CreatedApril 25, 2015
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