Tiebout Model

The Tiebout Model describes how people choose where to live based on their preferences for public goods and taxes. It suggests that individuals "vote with their feet" by moving to communities that best match their desired level of government services, like schools and parks, and their willingness to pay taxes. In this way, communities compete to attract residents by offering different combinations of services and tax rates. This model illustrates how decentralization can lead to more efficient allocation of resources, as people select neighborhoods that align with their values and needs.