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The Tiebout-Tullock hypothesis re-examined using tax freedom measures: the case of post-Great Recession state-level gross in-migration

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Abstract

Since Charles Tiebout first hypothesized that consumer-voters move to the venue that best satisfies their preferences for public goods and since Gordon Tullock subsequently emphasized that the migration decision would involve assessing the tax burden associated with that venue, numerous studies of the Tiebout (sometimes, the Tiebout-Tullock) hypothesis have been published. The present study re-examines that hypothesis in terms of tax freedom indices, namely, the income tax freedom index, the property tax freedom index, and the sales tax freedom index, as well as the index of overall tax freedom, while at the same time allowing for various economic variables and quality of life variables, with the latter including yet another form of freedom, namely, the overall personal freedom index. The empirical estimates all provide strong support for the hypothesis in terms of the impact of these tax freedom indices on state-level US gross in-migration over the 2010–2017 post-Great Recession period.

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Correspondence to Richard J. Cebula.

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Cebula, R.J. The Tiebout-Tullock hypothesis re-examined using tax freedom measures: the case of post-Great Recession state-level gross in-migration. Public Choice (2023). https://doi.org/10.1007/s11127-022-01038-5

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