Sunday, September 11, 2016

Revealed Preferences in New York Suburbs

Home owners who are looking for certain institutions: a busy downtown, good transportation options, good public schools, and an active community say that Westfield, New Jersey has great appeal to them. Especially to families looking to move out of New York City, there are many smaller towns to chose from while remaining within commuting distance. What sets Westfield apart from the rest of these towns is their local revenue expenditure pattern. Things like the community theatre and huge Westfield Memorial Library, as well as a Westfield sponsored 5k and annual Halloween parade, create the community feel that these families want. The public schools in Westfield have higher than state average test scores and the commute to New York City is only 40 minutes.


Those interviewed from this community demonstrate Tiebout’s model where local revenue expenditure patterns are given and consumers vote by moving. Tiebout would argue that with many services provided locally in this town, consumers are able to reveal their preferences by moving. The town’s popularity as a suburb of New York City would demonstrate the desirability of this local revenue expenditure pattern to consumers. In a region where the number of polities is very large and there is a lot of information about the different towns, consumers are able to reveal their preferences by choosing where they live.

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