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Description:
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Wallace Oates classic study which provided empirical support for the Tiebout hypothesis has been used as the basis for numerous future attempts to explain residential sorting among local jurisdictions . Oates and many others have focussed on school quality , specifically expenditure per pupil , as a reason for citizen voters' decisions to move . Data from Dallas suburbs seems to provide support for Tiebout's original hypothesis , that people choose a community based on the set of public goods that are provided there , but the expenditure per pupil variable was not significant . Texas school finance policy , which redistributes wealth from wealthier districts to poorer districts , makes the expenditure per pupil variable meaningless . Using a two stage least squares model , this study shows that standardized test scores from the Texas Assessment of Knowledge and Skills (TAKS ) test can be substituted as a school quality variable . Results of the study provide additional support for the Tiebout hypothesis in the Dallas , Texas area . |