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Migration and public policies: a further empirical analysis

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Abstract

This study of internal migration at the state level empirically investigates the Tiebout hypothesis (as extended by Tullock) of “voting with one’s feet.” In addition to its adoption of more current data (net migration from July, 2000 through July, 2008) than other related studies to date, the model differs from most previous comparable studies by including a separate cost of living variable and a measure of per capita state income tax burdens. We also test the hypothesis using two alternative specifications: one linear and the other semi-log. Finally, the analysis also provides both OLS and 2SLS estimates. The advantage of this multi-faceted approach is that it permits an assessment of how sensitive the results are to specification changes and to different estimation procedures. After controlling for economic factors and a quality of life/climate variable, migrants (consumer-voters) appear to prefer lower state income tax burdens, lower state plus local property tax burdens, and higher per pupil outlays on primary and secondary public education.

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Notes

  1. The reader may wish to see the earlier observations by Buchanan (1950) and West, Hamilton, and Loomis (1976).

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Authors and Affiliations

  1. Walker/Wells Fargo Endowed Chair of Finance, Jacksonville University, Davis College of Business, Jacksonville, FL, 32211, USA

    Richard J. Cebula

  2. Economics Department, Georgia Institute of Technology, Atlanta, GA, 30332, USA

    Usha Nair-Reichert

Authors
  1. Richard J. Cebula
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  2. Usha Nair-Reichert
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Correspondence to Richard J. Cebula.

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Cebula, R.J., Nair-Reichert, U. Migration and public policies: a further empirical analysis. J Econ Finan 36, 238–248 (2012). https://doi.org/10.1007/s12197-011-9181-z

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  • DOI: https://doi.org/10.1007/s12197-011-9181-z

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