An implication of the Tiebout model is that comparable houses in a community with a relatively ________ level of taxes,given a level of public goods,will be worth _________.

Question

Quizplus · Accepted Answer

The Tiebout model suggests that people "vote with their feet" by moving to communities that best fit their preferences for public goods and tax levels. A higher tax level, assuming the provision of public goods is the same, would make a house less attractive due to the higher ongoing costs of living there, potentially reducing its value.

An Implication of the Tiebout Model Is That Comparable Houses