Tiebout Question from My Graduate Public Choice Midterm
By Bryan Caplan
Here’s the most open-ended question I included on last week’s Graduate Public Choice midterm:
Suppose four states engage in Tiebout competition for a population that looks exactly like the current population of the United States. What are the main differences between populations of the four states likely to be? What are the main policy differences between the four states likely to be? Carefully defend your answer using empirical public opinion research.
I’d like to hear your answers. Remember that relocation in the standard Tiebout model is costless. I’ll post my suggested answer in a follow-up post.