Rhode and Strumpf (2003) argue "that long-run trends in geographic segregation are inconsistent with models where residential choice depends solely on local public goods (the Tiebout hypothesis)." They extend the Tiebout model prediction that "as mobility costs fall, the heterogeneity across communities of individual public good preferences and of public good provision must (weakly) increase". They empirically evaluate local heterogeneity from 1850 through 1990 to assess the importance of Tiebout Sorting. "Almost all [] empirical results stand in opposition to the Tiebout prediction of increasing heterogeneity across communities. For example, considering a sample of U.S. municipality sample, "heterogeneity of local policy outcomestotal local taxes per capita and school taxes per capitahas declined significantly."

(i) What other factors might have played any important role in determining public good provision? The answer is in the paper.

(ii) Consider the public goods of (1) public schools and (2) prenatal & postpartum care. According to the Tiebout model, which of the two goods is more efficiently provided in a decentralized, local way and why?

Please google "Assessing the Importance of Tiebout Sorting: Local Heterogeneity from 1850 to 1990 by Rhode and Strumpf" if you need the article.