Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10482552 | Regional Science and Urban Economics | 2013 | 11 Pages |
Abstract
The Tiebout model assumes that individuals sort to the jurisdiction which best matches their fiscal preferences. However, there is a paucity of reliable estimates for the impact of tax changes on household mobility. We utilize a state mandated school finance reform and temporal differences in vacation home densities to provide a unique test of this fundamental Tiebout assumption. The results show that changes in property taxes explain a significant amount of the variation in vacation home growth; a 3-4Â mil decrease in property tax rates is associated with an increase of approximately one vacation home per square kilometer.
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Economics and Econometrics
Authors
Erik Johnson, Randall Walsh,