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Peer reviewedBrouhle, Keith; Corrigan, Jay; Croson, Rachel; Farnham, Martin; Garip, Selhan; Habodaszova, Luba; Johnson, Laurie Tipton; Johnson, Martin; Reiley, David – Journal of Economic Education, 2005
This classroom exercise illustrates the Tiebout (1956) hypothesis that residential sorting across multiple jurisdictions leads to a more efficient allocation of local public goods. The exercise places students with heterogeneous preferences over a public good into a single classroom community. A simple voting mechanism determines the level of…
Descriptors: Microeconomics, Taxes, Residential Patterns, Economics Education
