Abstract
Most consumer goods have to stand the test of the market; firms that price too high or produce goods of a quality that is too low generally fair poorly. One might think that the goods and services supplied by local governments avoid the market test because governments can force us to pay for them through our taxes. But Charles Tiebout, in an influential article published in 1956, showed how local public goods and services, such as public schools, police, and local environmental quality, also have to withstand the rigors of the market.
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