According to the Tiebout model of local government expenditure,

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The Tiebout model suggests that citizens will choose to live in the jurisdiction that provides the bundle of public goods and services that best aligns with their preferences. They are mobile, so they can vote with their feet by moving to different jurisdictions. Therefore, local governments compete to attract citizens by offering different types and levels of public goods at different tax rates. This will result in a sorting of citizens according to their preferences, leading to heterogeneous communities. The model assumes that citizens are rational and well-informed, so they can compare the benefits of services and taxes across communities.

According to the Tiebout Model of Local Government Expenditure