Sunday, October 04, 2020

Fitting into Tiebout's model

As I have begun searching for jobs after graduation, I have started to plan for where I would like to live. I called my buddy from Sterling the other day to gather information about each of the regions up in Northern Virginia and it got me thinking about Public Choice.

The research I have been putting into deciding where to live reminds me of Charles Tiebout's A Pure Theory of Local Expenditures. Right now, my situation allows me to fulfill all of the assumptions we covered when considering where to live. I have perfect mobility (I can move my things anywhere at the end of this year), I have near-perfect information (because of the internet), I have a large choice set of neighborhoods, there are lots of job openings for college graduates, and there seem to be no externalities between neighborhoods.

Based on the article referenced earlier, the communities are fighting over consumer voters (myself included) with all kinds of public goods. When the communities are left alone to provide public goods to the consumer voters, they attempt to outperform one another until everyone's ideals are satisfied. Also, the communities will get a sense of what their consumer voters desire by observing the success of surrounding communities. Whether my interests lie in tasty restaurants, outdoor public arts spaces, access to public transportation, or public parks, I will move to the community that provides me with the highest level of utility given my budget constraint. 

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