We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The Tiebout Model - Essay Example

Comments (0)
Summary
The Way The System Of Finance For Local Government Has Evolved Over The Past 30 Years Militates Against The Establishment Of Tiebout Effects. This Uniformity Is Undesirable and Future Reforms Should Seek To Encourage a Greater Diversity of Service Provision Name Instructor Task Date The Tiebout model is an economic model explaining competition among the state and local governments…
Download full paper
GRAB THE BEST PAPER
The Tiebout Model
Read TextPreview

Extract of sample
The Tiebout Model

Download file to see previous pages... The main finding included the fact that inter-jurisdictional competition is a vital element of the mechanism. The key players in Tiebout’s model are individual citizens and governments. business firms are not an explicit part of the model (Brueckner 2004, p 138). It was meant to be applied to local governments and to a lesser degree, to state governments. The model assumes citizens have full knowledge of government revenue and expenditure packages, that there are a large number of communities among which individuals can choose to live, and that people will opt for the community that best satisfies their preferences. Moreover, the model assumes that government services exhibit no spillover effects (Billings 2008, p 45). Tiebout’s model made three additional assumptions; one, that jobs impose no locational constraint on individuals; two, that a community’s optimal size, meaning the size for which the average cost of producing a particular packages of public services is minimized, can be determined; and three, that each community seeks to attain its optimal size (Feiock 2004, p. 76). The model envisions citizens sorting themselves out among available communities so that demands for government services within any particular community would become homogenous. In theory, Tiebout concluded that to the extent these rather restrictive assumptions are met, good and services provided by the local public sector will exhibit both allocative efficiency (the right amounts of the various good and services are produced ) and productive efficiency (they are produced at least cost) (Rivkin 2001, p. 206). In Tiebout’s model, community taxes would be benefit taxes, or proportional to the benefits citizens receive form public services, rather than taxes based on the ability to pay. Tiebout’s model implies that any redistribution of income is taken care of by the federal government (Rivkin 2001, p. 207). Despite all the pros of the Tiebout model, various changes in the finance systems of local governments over the last three decades, such as fiscal centralization, work against the establishment of Tiebout effects. This uniformity is undesirable and future reforms should target to encourage a greater diversity of service provision. Competition among local governments, cities and municipalities, as depicted in Tiebout’s model, most at times serve to improve efficiency and delivery of service and goods to the citizens. Based on Tiebout’s model, where there is competition, citizens will come together to take care of all types of demands for public goods and service (Widmer & Zweifel 2008, p. 5). Moreover, individuals will relocate to communities that best meets their demand for public goods and services and the productivity is improved and more efficient since shady and/ ineffective providers of public services and goods will not get any clients. Tiebout model has all the benefits of a competitive market (Feiock 2004, p. 97). According to Tiebout, it is clear that decentralization of provision of public goods and services results in a positive influence on performance. The rationale is that citizens will procure from the providers who give them the best quotient between public service and tax paid. In a study on fiscal equalization, where disparities among local ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
State and local government finance: Massachusetts
This division is also charged with the duty to monitor the repayment of these particular debts. The local government is therefore expected to actively participate in determining projects’ feasibility, the most appropriate form of financing and the realistic size of financing.
3 Pages(750 words)Essay
Discipline Model
The Ginott Model says that discipline takes place step by step and is a process. The basic idea is to give sane messages and stick to make sure to fulfill the things that you have said. The Glasser Model tells us to help the students make good choices because good choices result in good behavior.
3 Pages(750 words)Essay
ISLM model
Therefore, at every point on IS curve total demand for goods and services in an economy at any particular time is equal to the total supply of output at that time, or in other words to say, total investment is equal to total saving. The LM curve on the other hand, shows
4 Pages(1000 words)Essay
Econ 212G final essay
rticle by Nobel laureate in economics Paul Samuelson about public choice, the model asserts that individual responds to the goods and services offered by local governments (with the corresponding taxes they pay) by choosing the local community that maximizes their utility, or
5 Pages(1250 words)Essay
Econ 212G final essay Lee
Tiebout states that, in light of this, people travel from one province to the other, until they find the one where the goods/services offered, even after considering the tax rates, provide them with optimal utility. Based on this hypothesis, it can be
5 Pages(1250 words)Essay
The System Of Finance For Local Government
The main finding included the fact that inter-jurisdictional competition is a vital element of the mechanism. The key players in Tiebout’s model are individual citizens and governments. business firms are not an explicit part of the model. It was meant to be applied to local governments and to a lesser degree, to state governments.
6 Pages(1500 words)Essay
Summary of an article
Everybody will have the incentive to play down their true preferences in order to make their tax burden a little more manageable, while maintaining their optimism to be able to benefit from the goods supplied by others. Looking at this situation, markets
3 Pages(750 words)Essay
Model
The tools of analysis used include the SWOT and the PESTEL analysis. These are very efficient methods of identifying the values of a business organization, and whether
2 Pages(500 words)Essay
Tiebout mi
v. Virginia M. is to be cited in this case as they are quite similar. In both cases, the biological parent of the child is only one and the other is a non-parent. According to the Supreme Court ruling of this case, the child’s sole custody and rights of parenthood
4 Pages(1000 words)Essay
Change Model
As the saying goes, "Change is inevitable." In the current competitive business world, companies need to constantly change their processes so that they can survive in the market (Cummings, 2009). Change is no longer optional for companies, and they now have to learn how to love change so that they can have a competitive advantage.
4 Pages(1000 words)Essay
Let us find you another Essay on topic The Tiebout Model for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us