"Tiebout’s model has been empirically and theoretically studied by many scholars. Among abundant literature on this topic, assumptions and definitions on public goods vary. In this paper, I introduce club good into an agent based Tiebout’s model where the population size is a public good. Thus, the migration between towns is endogenously influenced by the optimal population size of towns, i.e. migration barrier. I study the welfare implications and find that social welfare will decrease if the migration barrier is fully effective, i.e. no migration; social welfare will be the same if the migration barrier is partially effective, i.e. some migrations are deterred."
Tiebout, C.M., 1956. A pure theory of local expenditures. Journal of Political Economy, 64(5), pp.416-424.
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Semester Created: Fall 2019