Trapped in the Tiebout model : the impact of federal affordable housing programs on migration of wealthier residents.

Abstract

do not pay more taxes for the public goods used exclusively by the poor, like welfare and health, further migration may still occur under a decentralized fiscal system. Property taxation requires wealthier residents to pay more for each unit of other nonexclusive public goods than the poor do. The research implies that funding anti-poverty programs at the local level rather than the national level may stimulate the out-migration of wealthier residents. As wealthier residents exit the newly mixed-income municipalities, poverty may re-concentrate, limiting the effectiveness of housing mobility programs.vii