Tag: Voting with Your Feet

  • Charles Tiebout and the Limits of Voting with Your Feet

    Tiebout begins where the hardest political question has already been solved: the freedom to enter another community

    Imagine two neighboring towns.

    Town A has higher taxes, larger parks, better public transport, and more generous local services.

    Town B has lower taxes, fewer services, larger lots, and different schools.

    You can afford to live in either.

    You know what each town offers.

    And if you prefer the other town, you can move there.

    No visa.

    No immigration officer.

    No question of whether you are legally entitled to enter.

    That last assumption is easy to miss.

    But it may be the most important one.

    In 1956, economist Charles Tiebout proposed a famous model in which residents could choose among local communities offering different combinations of taxes and public services.

    Tiebout’s model later became widely associated with the phrase “voting with your feet.”

    The idea has an obvious connection to Foot Democracy.

    But Tiebout begins from a condition that international political mobility does not normally provide.

    Entry is already assumed.

    What Tiebout Was Trying to Explain

    Tiebout’s A Pure Theory of Local Expenditures was a contribution to public finance.

    His problem was not immigration or citizenship.

    It was preference revelation.

    Consumers reveal preferences for private goods by buying them.

    Local public goods work differently.

    Residents do not buy one unit of policing, one unit of schooling, or one unit of zoning.

    Local governments provide bundles of taxes and services.

    Tiebout suggested that residential mobility could reveal preferences in another way.

    If many communities offer different bundles, residents can sort themselves among them.

    A person who prefers one combination can move to one community.

    Someone who prefers another combination can move elsewhere.

    That is the mechanism.

    But it depends on strong assumptions.

    The Model Starts with Mobility

    Tiebout explicitly described his model as an extreme one.

    Among other things, it assumes that residents are fully mobile, know the differences among communities, have many communities to choose from, and are not constrained by employment location.

    Those assumptions are often presented as technical simplifications.

    For the World Citizen framework, one of them is more than technical.

    It is political.

    People are already allowed to enter the alternative communities.

    That makes local residential choice fundamentally different from international migration.

    Within a country, moving from one municipality to another is often treated as an ordinary exercise of liberty.

    Across an international border, the same movement becomes an admission question.

    The destination government can say no.

    That difference changes everything.

    Tiebout Begins After Entry

    This is the point at which Tiebout and Foot Democracy separate most clearly.

    Tiebout asks:

    If people can choose among communities, what happens?

    The World Citizen framework has to ask an earlier question:

    Who is allowed to choose among communities in the first place?

    Inside Tiebout’s model, Entry is part of the background.

    For international political choice, Entry is one of the central institutions that must be explained.

    A person may strongly prefer another political community.

    They may prefer its laws, schools, labor market, political culture, safety, or public institutions.

    None of that gives them a general legal right to enter it.

    So before “voting with your feet” can operate internationally, a prior barrier appears.

    The person needs somewhere they are actually allowed to go.

    Why Does Entry Change at the Border?

    The contrast becomes especially visible inside federal systems.

    In the United States, movement between states is treated as a constitutional liberty.

    In Saenz v. Roe (1999), the U.S. Supreme Court described the right to travel as including the right to enter and leave another state, to be treated as a welcome visitor, and—for those who become permanent residents—to be treated like other citizens of the new state.

    A person can leave California for Nevada without asking Nevada for immigration permission.

    That makes the third element especially important.

    Within the United States, interstate mobility includes more than the freedom to enter another state. Once a citizen establishes permanent residence there, the Constitution also protects the right to be treated like other citizens of the new state.

    Entry and equal standing are therefore institutionally connected within the federal union.

    The World Citizen framework asks whether something analogous can be developed across political communities internationally—without pretending that interstate and international movement are legally the same.

    And there is already a partial cross-border example.

    European Union citizens have treaty-based rights to move and reside within the territory of other Member States, subject to specified conditions and limitations.

    The EU does not abolish nationality, and it does not create unrestricted global mobility.

    But it does show that freedom of movement can be institutionally protected across sovereign-state borders.

    So the question is not whether cross-border freedom of movement is imaginable.

    It is how far such freedom can be extended, under what conditions, and how it should connect to residence and equal political standing.

    Who Can Afford to Vote with Their Feet?

    Legal Entry is not enough if practical access is unequal.

    Consider school districts.

    A family may prefer a community with strong schools, parks, public safety, and other services.

    But choosing that community may require buying or renting a more expensive home.

    The public-service bundle may be formally open.

    The housing market may make it practically inaccessible.

    Differences in local taxes and public services can also be reflected in property values.

    Wallace Oates’s classic 1969 study helped establish the empirical literature on this capitalization effect.

    So in practice, “choosing” a jurisdiction may partly mean being able to afford access to it.

    Zoning can reinforce that effect.

    Land-use rules may limit housing types or density, making entry into a desirable jurisdiction more expensive.

    This does not make local differentiation illegitimate.

    It does mean that formal mobility and real mobility are different things.

    Two families may possess the same legal right to move.

    Only one may have a realistic ability to exercise it.

    And this turns the Tiebout mechanism into a deeper political question:

    Who can afford to choose which governments?

    Foot Democracy Cannot Simply Assume Mobility

    This is why the difference between Tiebout and Foot Democracy is deeper than scale.

    Tiebout’s model begins with usable mobility.

    Foot Democracy has to ask how usable mobility is created.

    That includes legal Entry.

    But it also includes housing.

    Information.

    Income.

    Professional recognition.

    Rights portability.

    Family circumstances.

    And the possibility of eventually becoming an equal political member.

    Earlier articles discussed why Exit alone is insufficient and why rights need to survive movement.

    This article adds a different point:

    these are not complications added after the Tiebout mechanism. They are conditions that must exist before the mechanism can become politically meaningful.

    Tiebout assumes the bridge.

    Foot Democracy has to build it.

    Mobility Is an Imperfect Political Signal

    Even after these conditions exist, moving is not the same as voting.

    People move for jobs, family, housing, climate, safety, language, schools, and many other reasons.

    Leaving a community therefore does not send one clear political message.

    Staying does not prove consent either.

    That problem was discussed earlier in the article on Albert Hirschman.

    For present purposes, the narrower conclusion is enough:

    mobility can reveal information, but it is not a clean ballot.

    This is why “voting with your feet” should remain a metaphor.

    Competition Can Produce Useful Variation

    Tiebout nevertheless identifies something important.

    Different communities can offer different institutional arrangements.

    That variation can matter.

    One community may organize transport differently.

    Another may experiment with housing.

    Another may combine taxes and services in a different way.

    Residents may respond to those differences.

    Governments may learn from one another.

    Successful arrangements may spread.

    A political order with several communities therefore allows forms of institutional experimentation that one uniform system may suppress.

    This is one genuine attraction of jurisdictional choice.

    But it is not the whole story.

    Spillovers Do Not Stay Inside Communities

    Tiebout’s model also assumes away major external effects between jurisdictions.

    Real governments cannot.

    A community can cut taxes while relying on infrastructure outside its borders.

    Pollution can cross boundaries.

    Workers can live in one place and work in another.

    A prosperous jurisdiction may benefit from education or services financed elsewhere.

    A restrictive housing policy may push costs onto neighboring communities.

    So competition among political communities cannot govern every problem by itself.

    Some functions require coordination.

    Some require shared rules.

    Some require fiscal arrangements.

    Some require basic rights protections.

    This is consistent with the polycentric structure discussed earlier in the series.

    Different functions may belong at different levels.

    What Tiebout Actually Adds

    After all these limits, what remains valuable in Tiebout?

    Quite a lot.

    He shows that political and fiscal choice can have a spatial dimension.

    People may care not only about who governs them.

    They may care about which institutional package they live under.

    That insight matters.

    But Tiebout’s mechanism works because several difficult political questions are already treated as solved.

    There are alternatives.

    People know about them.

    They can enter them.

    They can afford to move.

    They can establish themselves there.

    Foot Democracy cannot begin with those conditions as assumptions.

    It has to ask how they are created, protected, and distributed.

    Conclusion

    Tiebout’s model asks what happens when people can choose among communities.

    That is a useful question.

    But for international political freedom, it is not the first question.

    The first question is whether people are actually allowed to choose among communities at all.

    Inside a country, Entry into another local jurisdiction may be treated as ordinary.

    At an international border, Entry becomes permission.

    And even where permission exists, housing prices, rights portability, work, family obligations, and other constraints determine whether movement is real.

    This is the limit of “voting with your feet.”

    The metaphor starts after the hardest problem has already been solved.

    The World Citizen framework begins there.

    Tiebout assumes Entry. Foot Democracy has to explain and build it.


    Notes

    Charles M. Tiebout, “A Pure Theory of Local Expenditures,” Journal of Political Economy 64, no. 5 (1956): 416–424. Tiebout’s model concerns local public expenditures and preference revelation through residential mobility; it is not a theory of citizenship or international migration.

    Tiebout’s stylized model assumes, among other things, full mobility, full knowledge of revenue and expenditure differences, many available communities, no employment-location constraint, no significant intercommunity external economies or diseconomies, and assumptions concerning optimal community size and population adjustment.

    Saenz v. Roe, 526 U.S. 489 (1999), describes components of the U.S. constitutional right to interstate travel, including entry into and departure from another state and equal treatment of new permanent residents. The comparison here is analytical: interstate movement within a federal state and international immigration remain legally distinct.

    Article 21 of the Treaty on the Functioning of the European Union provides EU citizens with a right to move and reside freely within the territory of the Member States, subject to conditions and limitations provided by the Treaties and implementing measures. This is a regional and citizenship-based arrangement, not a general right of global migration.

    Wallace E. Oates, “The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis,” Journal of Political Economy 77, no. 6 (1969): 957–971, is an early major empirical study of capitalization in the Tiebout literature.

    The World Citizen framework does not treat Tiebout sorting as equivalent to Foot Democracy. The World Citizen Society argues that mobility may be politically informative but is not a clean ballot, and that meaningful jurisdictional choice requires institutional conditions that cannot simply be assumed.


    Further Reading

    For why Exit does not by itself create political choice, see “Why Exit Is Not Enough: The Missing Problem of Entry.”

    For the relationship between Exit, Voice, and political community choice, see “Albert Hirschman: Why Exit and Voice Are Not Enough.”

    For why accumulated rights must survive movement, see “How Can Rights Survive Movement?”

    For the problem of territorial exclusion through housing and land-use rules, see “Why Territory Still Matters in a World Citizen Society.”

    For the full treatment, see Toshiyuki Nishimura, The World Citizen Society: Political Freedom, Democratic Choice, and the Institutions of a New Society, Chapter 13, “Tiebout, Hirschman, and the Limits of Exit.”