For the city of Chicago, 2016 has been a tough year thus far. By March of 2016 Chicago had seen their murder rate rise 72% and shootings surge 88% from the preceding year. With 141 murders and 677 shootings, Mayor Rahm Emanuel received significant criticism for not keeping his city safe. The problem was promulgated by the growing national debate over Police relations. Problems continued through the summer for Chicago as the number of shootings passed 3,000 in early September; in 2015 there were roughly 2900 shooting in the entire year.
This trend has been devastating for the citizens of Chicago and it's reputation across the nation. The most recent census report shows Chicago population dropping by about 10,000 people from 2014 to 2015. Furthermore, Chicago Tribune reporter, William Lee, attributes the population decline in part to "violence and lack of community interest".
Approximately a month ago, Police Superintendent, Eddie Johnson, alongside Mayor Emanuel announced a program that would increase the Chicago Police force by nearly 1,000 officers. Emanuel hopes the initiative will be incorporated into the 2017 budget.
Economist Charles Tiebout's theory of local expenditures explains the behavior above. Individuals have widely differing preferences - heterogeneity. If we view the revenue expenditure patterns of localities as a product, then we will see citizens sorting themselves into the localities that suit their preferences best. In the eyes of many Chicago citizens, the revenue expenditure pattern of Chicago was less desirable than other localities. So they moved. The city of Chicago in turn altered its revenue expenditure pattern, by adding more police, in order attract more individuals and maintain the ones living their now. In the end, this example and Tiebout's theory help solve the problem of preference revelation and increases efficient allocation by keeping power at the local level.
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