EXITING BEHAVIOR UNDER TIEBOUT CONDITIONS - TOWARDS A PREDICTIVE MODEL

The paper briefly reviews recent research that adapts and extends the Tiebout model of residential choice, paying special attention to those studies which utilize Hirschman's exit, voice and loyalty model. The paper argues that these are theoretically and empirically flawed since they do not take account of Tiebout-rational intra-jurisdictional mov es but concentrate upon potential exiting behavior. The article then t ests the importance of the inter-/intrajurisdictional distinction usin g a legit model of factors using data from the 1990 Economic and Socia l Research Council Mobility Study (ECSRCMS) of London. Finding weak re sults from this analysis, the article then offers a more powerful test of factors predicting a move to jurisdictions with preferable tax rat es.