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How You Can Force the Government To Do What You Want
An Introduction to the Tiebout Model
When we think about public goods — parks, libraries, schools, or even national defense — one key question arises: Who should provide them? Private firms? Central government? Local Governments?
And how can I impose my preferences on these decisions?
As always in economics, it depends.
Who Pays for Roads and Parks?
Because of the nature of public goods, everyone benefits regardless of whether they pay. This begs the question: why would anyone voluntarily contribute?
This is why governments step in to fund public goods through taxes.
But who exactly is “the government”? Your town’s mayor? A county official? Maybe a state one? Or the Federal Government?
This is where Charles Tiebout’s model provides some clarity.
The Tiebout Model: Voting with Your Feet
The problem with centralized public goods provision, as opposed to private provision, was the absence of…
