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The consumer-voter may be viewed as picking that community which best satisfies his preference pattern for public goods. At the central level the preferences of the consumer-voter are given, and the government tries to adjust to the pattern of those preferences, whereas at the local level various governments have their revenue and expenditure more or less fixed. Given these revenue and expenditure patterns, the consumer-voter moves to that community whose local government best satisfies his set of preferences.(Tiebout, 1956, p. 418)

This is one of the most-quoted paragraphs from one of the most-cited articles in urban politics.'The view thatvoting with one's feet'will reveal citizens' preferences for local public services and lead to the efficient allocation of local public goods is often referred to as the'Tiebout hypothesis'. Rather, Tiebout's argument is apure theory'which in economics signals a model shorn of all'real …