IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v199y2024i1d10.1007_s11127-022-01038-5.html
   My bibliography  Save this article

The Tiebout-Tullock hypothesis re-examined using tax freedom measures: the case of post-Great Recession state-level gross in-migration

Author

Listed:
  • Richard J. Cebula

    (George Mason University)

Abstract

Since Charles Tiebout first hypothesized that consumer-voters move to the venue that best satisfies their preferences for public goods and since Gordon Tullock subsequently emphasized that the migration decision would involve assessing the tax burden associated with that venue, numerous studies of the Tiebout (sometimes, the Tiebout-Tullock) hypothesis have been published. The present study re-examines that hypothesis in terms of tax freedom indices, namely, the income tax freedom index, the property tax freedom index, and the sales tax freedom index, as well as the index of overall tax freedom, while at the same time allowing for various economic variables and quality of life variables, with the latter including yet another form of freedom, namely, the overall personal freedom index. The empirical estimates all provide strong support for the hypothesis in terms of the impact of these tax freedom indices on state-level US gross in-migration over the 2010–2017 post-Great Recession period.

Suggested Citation

  • Richard J. Cebula, 2024. "The Tiebout-Tullock hypothesis re-examined using tax freedom measures: the case of post-Great Recession state-level gross in-migration," Public Choice, Springer, vol. 199(1), pages 65-81, April.
    • Handle: RePEc:kap:pubcho:v:199:y:2024:i:1:d:10.1007_s11127-022-01038-5
    DOI: 10.1007/s11127-022-01038-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11127-022-01038-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11127-022-01038-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Plantinga, Andrew J. & Détang-Dessendre, Cécile & Hunt, Gary L. & Piguet, Virginie, 2013. "Housing prices and inter-urban migration," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 296-306.
    2. Nikolaev, Boris & Bennett, Daniel L., 2017. "Economic Freedom and Emotional Well-Being," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 47(1).
    3. Stansel, Dean B., 2013. "An Economic Freedom Index for U.S. Metropolitan Areas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(1).
    4. Paul K. Gatons & Richard J. Cebula, 1972. "Wage-Rate Analysis: Differentials and Indeterminacy," ILR Review, Cornell University, ILR School, vol. 25(2), pages 207-212, January.
    5. Mark Gius, 2011. "The effect of income taxes on interstate migration: an analysis by age and race," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(1), pages 205-218, February.
    6. Joshua C. Hall & Robert A. Lawson, 2014. "Economic Freedom Of The World: An Accounting Of The Literature," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 1-19, January.
    7. Cebula, Richard, 1973. "Interstate Migration and the Tiebout Hypothesis: An Analysis According to Race, Sex, and Age," MPRA Paper 49827, University Library of Munich, Germany, revised 01 Feb 1974.
    8. Roel Jennissen, 2003. "Economic Determinants of Net International Migration in Western Europe," European Journal of Population, Springer;European Association for Population Studies, vol. 19(2), pages 171-198, June.
    9. Conway, Karen Smith & Houtenville, Andrew J., 2001. "Elderly Migration and State Fiscal Policy: Evidence From the 1990 Census Migration Flows," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(1), pages 103-124, March.
    10. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    11. Thomas A. Knapp & Nancy E. White & David E. Clark, 2001. "A Nested Logit Approach to Household Mobility," Journal of Regional Science, Wiley Blackwell, vol. 41(1), pages 1-22, February.
    12. Bowles, Samuel, 1970. "Migration as Investment: Empirical Tests of the Human Investment Approach to Geographical Mobility," The Review of Economics and Statistics, MIT Press, vol. 52(4), pages 356-362, November.
    13. Foley, Maggie & Angjellari-Dajci, Fiorentina, 2015. "Net Migration Determinants," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    14. Franklin G. Mixon, 1992. "Factors Affecting College Student Migration across States," International Journal of Manpower, Emerald Group Publishing Limited, vol. 13(1), pages 25-32, January.
    15. Cebula, Richard J. & Alexander, Gigi M., 2006. "Determinants of Net Interstate Migration, 2000-2004," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(2), pages 1-8.
    16. Conway, Karen Smith & Houtenville, Andrew J., 2001. "Elderly Migration and State Fiscal Policy: Evidence from the 1990 Census Migration Flows," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 103-24, March.
    17. Onder, Ali Sina & Schlunk, Herwig, 2015. "State Taxes, Tax Exemptions, and Elderly Migration," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    18. Ronald L. Whisler & Brigitte S. Waldorf & Gordon F. Mulligan & David A. Plane, 2008. "Quality of Life and the Migration of the College‐Educated: A Life‐Course Approach," Growth and Change, Wiley Blackwell, vol. 39(1), pages 58-94, March.
    19. Russell Sobel & J. Clark & Dwight Lee, 2007. "Freedom, barriers to entry, entrepreneurship, and economic progress," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 20(4), pages 221-236, December.
    20. Richard J. Cebula, 1978. "An Empirical Note on the Tiebout-Tullock Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(4), pages 705-711.
    21. Saltz, Ira S. & Capener, Don, 2016. "60 Years Later and Still Going Strong: The Continued Relevance of the Tiebout Hypothesis," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(1).
    22. Lewis R. Gale & Will Carrington Heath, 2000. "Elderly Internal Migration in the United States Revisited," Public Finance Review, , vol. 28(2), pages 153-170, March.
    23. Cebula, Richard J, 1990. "A Brief Empirical Note on the Tiebout Hypothesis and State Income Tax Policies," Public Choice, Springer, vol. 67(1), pages 87-89, October.
    24. Richard Cebula, 2014. "The Impact of Economic Freedom and Personal Freedom on Net In-Migration in the U.S.: A State-Level Empirical Analysis, 2000 to 2010," Journal of Labor Research, Springer, vol. 35(1), pages 88-103, March.
    25. Chi, Guangqing & Voss, Paul, 2005. "Migration Decision-making: A Hierarchical Regression Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 35(2), pages 1-12.
    26. Conway, Karen Smith & Houtenville, Andrew J, 1998. "Do the Elderly "Vote with Their Feet"?," Public Choice, Springer, vol. 97(4), pages 663-685, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Onder, Ali Sina & Schlunk, Herwig, 2015. "State Taxes, Tax Exemptions, and Elderly Migration," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    2. Richard J. Cebula & J. R. Clark, 2013. "An extension of the Tiebout hypothesis of voting with one's feet: the Medicaid magnet hypothesis," Applied Economics, Taylor & Francis Journals, vol. 45(32), pages 4575-4583, November.
    3. Foley, Maggie & Angjellari-Dajci, Fiorentina, 2015. "Net Migration Determinants," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    4. Mulholland, Sean E. & Hernandez-Julian, Reynaldo, 2021. "Does Economic Freedom Lead to Selective Migration by Sex and Race?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(1), July.
    5. Richard J. Cebula & J.R. Clark, 2011. "Migration, Economic Freedom, and Personal Freedom: An Empirical Analysis," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 27(Fall 2011), pages 43-62.
    6. Richard J. Cebula, 2009. "Migration and the Tiebout‐Tullock Hypothesis Revisited," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(2), pages 541-551, April.
    7. Imran Arif & Adam Hoffer & Dean Stansel & Donald Lacombe, 2020. "Economic freedom and migration: A metro area‐level analysis," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 170-190, July.
    8. Cebula, Richard J. & Alexander, Gigi M., 2006. "Determinants of Net Interstate Migration, 2000-2004," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(2), pages 1-8.
    9. Saltz, Ira S. & Capener, Don, 2016. "60 Years Later and Still Going Strong: The Continued Relevance of the Tiebout Hypothesis," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(1).
    10. Richard Cebula & Usha Nair-Reichert, 2012. "Migration and public policies: a further empirical analysis," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 36(1), pages 238-248, January.
    11. Richard Cebula, 2014. "The Impact of Economic Freedom and Personal Freedom on Net In-Migration in the U.S.: A State-Level Empirical Analysis, 2000 to 2010," Journal of Labor Research, Springer, vol. 35(1), pages 88-103, March.
    12. Alexander, Gigi & Foley, Maggie, 2014. "Determinants of Migration, Revisited," MPRA Paper 56967, University Library of Munich, Germany.
    13. Cebula, Richard & Nair-Reichert, Usha & Coombs, Christopher, 2013. "Total State In-Migration and Public Policy in the United States: A Comparative Analysis of the Great recession and the Pre- and Post-Great Recession Years," MPRA Paper 56484, University Library of Munich, Germany, revised 02 Feb 2014.
    14. Richard Cebula & Christopher Duquette & Franklin Mixon, 2013. "Factors Influencing the State-Level Settlement Pattern of the Undocumented Immigrant Population in the United States," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 41(3), pages 203-213, September.
    15. Johnson, Erik & Walsh, Randall, 2013. "The effect of property taxes on vacation home growth rates: Evidence from Michigan," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 740-750.
    16. Davidsson, Michael & Cortes, Bienvenido, 2017. "The Role of the Housing Supply and the Regulatory Environment in Economic Growth of Micropolitan Statistical Areas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 47(1).
    17. Daniel L. Bennett, 2021. "Local economic freedom and creative destruction in America," Small Business Economics, Springer, vol. 56(1), pages 333-353, January.
    18. Farnham, Martin & Sevak, Purvi, 2006. "State fiscal institutions and empty-nest migration: Are Tiebout voters hobbled?," Journal of Public Economics, Elsevier, vol. 90(3), pages 407-427, February.
    19. Margit Schratzenstaller, 2023. "Behavioral Responses to Inheritance Taxation. A Review of the Empirical Literature," WIFO Working Papers 668, WIFO.
    20. Richard Cebula, 2002. "Net interstate population growth rates and the Tiebout-Tullock hypothesis: New empirical evidence, 1990–2000," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 30(4), pages 414-421, December.

    More about this item

    Keywords

    Tiebout hypothesis; Tiebout-Tullock hypothesis; Consumer-voters; Tax freedom indices; Gross in-migration rate;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • R59 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:199:y:2024:i:1:d:10.1007_s11127-022-01038-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.