Abstract

https://ssrn.com/abstract=2729670
 


 



The Distance between Buchanan's 'An Economic Theory of Clubs' and Tiebout's 'A Pure Theory of Local Public Expenditures'. New Insights Based on an Unpublished Manuscript


Peter J. Boettke


George Mason University - Department of Economics

Alain Marciano


Université de Montpellier; French National Center for Scientific Research (CNRS) - Laboratoire d'économie théorique et appliquée (LAMETA)

December 15, 2015

GMU Working Paper in Economics No. 16-10

Abstract:     
This article introduces Buchanan's comment on Tiebout's "A Pure Theory of Local Public Expenditures". It helps us to understand the nature of the relationship between Buchanan and Tiebout. Usually, it is claimed that Buchanan modeled Tiebout's insights, that there exists a Buchanan-Tiebout hypothesis, and that Buchanan in 1965 complemented what Tiebout had written in 1956. We show that Buchanan could not have written "An Economic Theory of Clubs" as a complement of "A Pure Theory of Local Public Expenditures". He disagreed with Tiebout's ideas on mobility because he saw mobility as a cause of inefficiencies and not a cause of homogeneity in groups. This is what we show by putting Buchanan's comment on Tiebout into historical perspective. It appears that Buchanan interpreted Tiebout (1956) from the perspective of his works on fiscal federalism from the early 1950s. We show that there is a continuity between Buchanan (1950) and his works in the early 1970s; and Buchanan's way of reading Tiebout is part of it. Hence, when he wrote "An Economic Theory of Clubs", Buchanan was convinced that Tiebout was wrong and that he was offering an alternative framework for public economics.

Number of Pages in PDF File: 33

Keywords: Buchanan, Tiebout, Clubs, Fiscal federalism, Fiscal justice, spatial competition, free riding

JEL Classification: B31, H41, H73, H77


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Date posted: February 9, 2016 ; Last revised: April 10, 2016

Suggested Citation

Boettke, Peter J. and Marciano, Alain, The Distance between Buchanan's 'An Economic Theory of Clubs' and Tiebout's 'A Pure Theory of Local Public Expenditures'. New Insights Based on an Unpublished Manuscript (December 15, 2015). GMU Working Paper in Economics No. 16-10. Available at SSRN: https://ssrn.com/abstract=2729670 or http://dx.doi.org/10.2139/ssrn.2729670

Contact Information

Peter J. Boettke
George Mason University - Department of Economics ( email )
4400 University Drive
Fairfax, VA 22030
United States
703-993-1149 (Phone)
703-993-1133 (Fax)
Alain Marciano (Contact Author)
Université de Montpellier ( email )
Avenue Raymond Dugrand, CS 79606
Montpellier Cedex 1, F-34000
France
French National Center for Scientific Research (CNRS) - Laboratoire d'économie théorique et appliquée (LAMETA) ( email )
Montpellier
France
HOME PAGE: http://www.lameta.univ-montp1.fr/spip.php?rubrique233
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