Do People Vote With Their Feet

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  • 7/30/2019 Do People Vote With Their Feet

    1/21

    843

    America Ecoomic Review 2008, 98:3, 843863htt://www.aeaweb.org/article.h?oi=10.1257/aer.98.3.843

    C Tibout (1956) uggtio tt o vot wit ti t to t ommu-

    ity tt ovi ti otim bu o tx ubi goo y t o i

    t toy o o ubi ov t t 50 y, motivtig u iv ittu

    ititio oi, im, t omtio o ogou ubi goo.

    Mo ty, w gowig mii ittu vg t quiibium oti

    o t Tibout mo to itiy g quiibium mo o ouo otig (.g., Ptik J.

    By Cito Timmi 2007; Mi Mt Fy 2007; Hog Sig t . 2004).Giv t t imot o Tibout iigt, t v b uiigy w it

    tt o i mi. Exitig tt o t Tibout mo b gou ito two bo tgo-

    i.Iit o imiit tt, t mot ommo, v ou o utiv imitio o t

    mo. Fo xm, W E. Ot (1969) mi ti o t ik btw o tx

    vi kg oty vu itou oi mo imiit tt o Tibout

    quiibium. J K. Buk (1982) tt imitio o t mo t to t it o-

    viio o ubi goo. I t tig o t imt o Tibout mo toy, Ot

    (2005) igigt t t tt my tt v ou o iu o ttitio i m o

    ubi goo t ik btw ivity o ommuiti i iom ubi goo o-

    viio (.g., Ew M. Gmi Di L. Rubi 1982; Di E Sig 1999,

    Pu W. Ro Kom S. Stum 2003).Dit tt o tu migtoy o to ubi goo oviioTibout mim o

    o votig wit ti tv b ommo. I ti , w t ovi toti

    Do People Vote with Their Feet?

    An Empirical Test of Tiebouts MechanismBy H. Spencer Banzhaf and Randall P. Walsh*

    Charle Tiebout uggetio that eole vote with their eet or commui-tie with otimal bule o taxe a ublic goo ha laye a cetral rolei local ublic face or over 50 year. Uig a locatioal equilibrium moel,we erive ormal tet o hi remie. The moel reict icreae oula-tio eity i eighborhoo exeriecig exogeou imrovemet i ublicgoo a, or large imrovemet, icreae relative mea icome. We tetthee hyothee i the cotext o chagig air quality. Our reult rovie

    trog emirical uort or the otio that houehol vote with their eetor evirometal quality. (JEL H41, H73, Q53, R23)

    * B: Dtmt o Eoomi, Gogi Stt Uivity, PO Box 3992, Att, GA 30302 (-mi:[email protected]); W: Dtmt o Eoomi Ititut o Bvio Si, Uivity o Cooot Bou, 256 UCB, Bou, CO 80309 (-mi: [email protected]). Suot o ti w oviby t Ntio Si Foutio (SES-03-21566). W tk Li Cook Jou Sio o xt it. W o it t u ommt o Ptik By, Loi B, Tuy A Cmo, NioFo, Mi Gto, Mi Mgoi, Kt MCo, W Ot, Dvi Simo, Ky Smit,Cito Timmi, Ki Viui, Robto Wiim, A Wovto, two oymou . W o tktiit o t 2004 AERE Woko, t 2004 CU Eviomt Rou Eoomi Woko, t 2005ASSA mtig, t 2005 NBER Summ Ititut, t 2005 Oio Cioi Woko o Eviomt Ntu Rou Eoomi, mi tiit t Duk Uivity, Gogi Stt Uivity, Ri Uivity,Tut Uivity, t Uivity o Ct Foi, t Uivity o My, t Uivity o Miot, tUivity o Wioi.

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    JUnE 2008844 THE AMERICAn ECOnOMIC REVIEW

    mo tt it tiv i i outio ity o igbooo tt xi

    xogou mgi imovmt i ubi goo. Fo it imovmt, t mo

    it i tiv outio ity i mot tiv i i m

    igbooo iom o g imovmt (w iy mot g bow). To tt

    t t, w u i-i-i mo, itiyig t imt o ty xit oiiti tt qui to ot ti o mi o t Toxi R Ivtoy

    (TRI), w g i toxiity-wigt miio v, o outio mogi

    omoitio. W o tt o gg o to iig bi xou v, wi w

    ot ubiy ou uti 1989. A ou uit o yi, w u t o ommuiti

    omy i by quy -mi i. W oto o mogi ot

    otio-i t uig i gio , bu migtoy o my b igy

    oi utio o mogi, w ovi itio yi uig bi-ot o-

    mti mtig timto.

    Coitt wit t Tibout mo, w vi o migtio ot wit TRI

    iity miio ti iv to, o xit om, ommuity. Futmo, w vi

    tt TRI iiti u t omoitio o ommuity to bom oo ov tim. Tu,w uot o t umt mim uyig t Tibout mo: ouo o

    to vot wit ti t i o to g i ubi goo.

    Ou i ot t t to ook t u it tt o Tibout mim. Pii E. Gv

    Do M. Wm (1991) ou tt t y ti i outi w ubi goo

    iti mo ito wg t ito i. Mttw E. K (2000) ou migtio ito

    Cioi outi wit imovig i quity. T tt v iti outy i o

    tio o gio . Yt giv otit o mobiity t to miy, , ot t-

    wok, iti o to g to ubi goo mot iky to ou witi, t t

    o, mtooit . Tt t mo o v b mo mot. Viki B (1997)

    itt vi o g i mogi omoitio i u tt oowig t itigo ou wt ttmt tog io iiti. I uy out tuy o ou

    uu it, Tuy A Cmo I MCo (2006) imiy itt vi o

    tt i mogi o i by u tt oowig t u o Suu

    it. Nit tuy xmi t o outio ity. Fouig gy o oty vu

    o, Mi Gto Juti Gg (2006) ikwi tt, mog u tt

    otig Suu it, to tt igib o u xi o oitt tt

    i outio ity o vg iom, om to ot tt iigib o u u.

    Nvt, two mi o i oubt bout t i tt b w om

    t y. Fit, wit t xtio o Gto Gg (2006), t tui u

    oy vy t o oomti oto. So, o t tui u u tt o

    outi t t ommuity. It i, owv, ot tt t u tt i t o-it ommuity itio. Cu tt vy igity i i ot quit

    g, mkig it oib o ti u ommuity itio to mk mogi it

    tt ou witi tt. Aitioy, bu iiti ot ot og u tt

    boui, ttig iity t to ti ot tt itou igit oi to t mii-

    mo. Fiy, w iu bow, tt-v mogi omoitio my b ogou

    to ubi goo i t US Cu w tt boui to mk tm mo omogou. Ou

    otut ommuiti o to t o.

    I. Model

    To motivt t mii wok tt oow, w bgi i t iit o Tibout (1956)

    xo t imt o gig viomt quity o ommuity omoitio witi

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    VOL. 98 nO. 3 845BAnzHA And WALsH: An EMpIRICAL TEsT O TIEBOUT

    im g quiibium mo o otio oi. I tiu, w u mo o vtiy

    itit ommuiti itou by Di E, Ru Fiimo, Tom Rom

    (1984), mo g vio o wi w ty i to viomt imovmt

    by Sig t . (2004).

    Aum otiuum o ouo tt ti by ti iomy. T itibutioo iom i giv by1y 2wit otiuou uot ov t itv 3yl, yh 4 . Houo ooto iv i o oJommuiti, ix byj[ 51, ,J6, , oitio o otio oi,oo ti otim v o ouig. Houo t by t iit uti-

    ity utio V1y, p, G2 , w p i t i o uit o ouig G t viomtquity. T itio oV1 . 2 o imiity um t iuio o umi woi i omi to 1; V1 . 2 i um to b otiuou wit bou t ivtiv tttiy Vy. 0, VG. 0, Vp, 0. T oit ouig m utio i um it

    o t v oG i giv byd 1p, y 2 , wi i o otiuou wit bou t ivtivdy. 0 dp,0. Dm i um to b tity oitiv bou om bov. E

    ommuity i ti by otiuou ouig uy utio sj

    1p

    2 xogouy

    tmi v o viomt quity Gj. It i um tt o ommuity t ouiguy utio ioot bouig i p lju tt 5p # p

    lj, sj 1p2 5 0 5p . p lj, 0, sj 1p2 , ` (i.., uy i o t o bow t bouig i it otwi).

    To iitt titio o t quiibium otig o ouo o ommuiti,

    w ut um tt ouo tiy t ig oig oty. Ti oi-

    tio qui tt t o o iit ii uv i t 1G, p2 b iig iy.1 Giv t umtio o ig oig, quiibium b ti by oig o

    ommuiti tt i iig i bot p G. Tt i, t i oig o ommui-

    ti om ow-i, ow-quity ommuiti to ig-i, ig-quity ommuiti. Fut,

    o i o igboig ommuiti ( ot by ti kig), t wi xit t

    o bouy ouo (uiquy iti by iom v) wi iit btwt two ommuiti. Houo wo iom i bow t bouy iom wi t

    ow-o ommuity, to wo iom i bov t bouy iom wi

    t ig-o ommuity. Ti to t iom ttitio o ouo o

    ommuiti.2 Uiqu quiibium i pj bouy iom Y~j, j11 imiity

    by t quiibium oitio o qutio (1):

    (1) V1Y~j, j11, pj, Gj 2 5 V1Y~j, j11, pj11, Gj112 5j[ 51, ,J2 16,M

    y[Cjd

    1pj,y

    2

    1y

    2y 5 sj

    1pj

    2 5j[

    51, ,J

    6,

    wMi t tot m o ouo Cj i t t o iom otig i ommuity j.T qutio omi tJ2 1 bouy ii oitio t quimt tt

    t ouig mkt i o tJommuiti, yiig 2J2 1 qutio to itiy t

    2J2 1 ogou vib.

    To vo itio om t mo, w oi t o two ommuiti. W x t

    v o viomt quity i t o ommuity, G2, oi ow t quiibium

    outom (ommuity outio, iom, i) g t v o viomt

    quity i Commuity 1, G1, g. Fut, to imiy xoitio, w um itio

    1 Fo iuio o t ig-oig oty i ti otxt, E Sig (1999).2 It i tigtow to x ti umtio by itouig togity i tt o tt t xit iom t-

    ogity witi ommuity, but t ttitio by tt o iom ( E Sig 1999; Sig t. 2004). Aoigy, ti umtio i ot iti o t oowig imitio o t mo.

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    JUnE 2008846 THE AMERICAn ECOnOMIC REVIEW

    quiibium wit t outio i bot ommuiti tity oitiv (P1.pl1, p2.p

    l2). W

    bgi by otig tt iG1, G2 (G1 . G2) t t iom otig iig om t ig-o-

    ig umtio imi tt, i tm o m iom, y1 ,y

    2 (y

    2 ,y

    1). Bow, w outi t

    oo o t oowig ou ooitio tt ti quiibium ymi. A gi

    ttmt o t imitio o t ou ooitio i t i Figu 1.

    PROPOSITION 1:I G1ZG2, the

    dPOP1

    dG1

    . 0,dPOP2

    dG1

    , 0,dP1

    dG1

    . 0,dP2

    dG1

    , 0,dY

    1

    dG1

    . 0,dY

    2

    dG1

    . 0.

    Pooitio 1 oow ity om vutio o t omtiv tti o t two-om-

    muity vio o qutio (1). Uig t imiit utio tom, t oi t imt o

    iig G1 o t bouy iom, Y~

    1, 2/G1:

    2V1G1(2)

    dY~ 1, 2

    dG1

    5 ,

    d 1p1, Y~1, 22V1p1 d 1p2, Y~1, 22V221 1Vy1 2 Vy2221Y~1, 22 1 Y~1, 2 yh 3 dp11p1,y21y2y2s1p11p12 3dp2 1p2,y21y2y2s2p21p22

    yl Y~

    1, 2

    w Vj 5 V1Y~1, 2,pj, Gj 2 ubit ot ti ivtiv.T ky to igig t ivtiv i qutio (2) i to ogi tt t ig oig o-

    ty imi tt

    1Vy

    1 2 Vy2

    2, 0 tu Y

    ~1, 2/G1 . 0.

    3 Bu o iom ttitio, ti

    imi tt t outio i Commuity 1 (Commuity 2) i (). Ao ot ttbu t w ouo tig Commuity 1 vig Commuity 2 t bouy

    it out o ig iom v t t oigi ouo, Y

    1 i. Covy,

    t ouo v iom v ow t to miig i Commuity 2, o t i

    o i i Y

    2. Tu, t i o itio gig t relative mgitu o iom

    g oit wit mgi g i G1.

    Fo i imt,

    2V1g1(3)

    dP1

    dG1

    5 .

    1Vy

    1 2 Vy2

    2 Y~1, 2

    2V

    1

    p11 s3 dp1p1,y21y2y2s1

    p11p12 td 1Y~1, 2,p121Y~1, 22 yl Y~1, 2 s3 dp1p1,y21y2y2s1p11p12 td 1Y~1, 2, p22

    yl 2V2p2

    yh

    s3dp1p2,y21y2y2s2p21p22 td 1Y~1, 2, p12Y~

    1, 2

    3 By t itio oY~

    1, 2, V1Y~1, 2, p1, G125V1Y~1, 2, p2, G22 . Si to wit iom ig t Y~1, 2 Com-muity 2, V1Y~1, 2,1e, p1, G12,V1Y~1, 2,1e, p2, G22 , 5e. 0.

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    Agi, it i tigtow to ig qutio (3) mott tt p1/G1. 0. Simi

    yi mott tt p2/G1 , 0.

    PROPOSITION 2: Whe G15G2 there i a uique equilibrium rice, p

    G1 5 G2, a a cotiuum

    o equilibrium houehol ortig.

    Pooitio 2 oow om t t tt w G15G2 t ommuiti iti

    itio outio qui tt p15 p2. Fut, ig oig o og imi y tiu

    otig o iiviu. Howv, wtv t otig o iiviu, t um o t m

    o bot ommuiti mut qu t um o uy o bot ommuiti. Tu, w v

    t gggt mkt ig oitio o qutio (4):

    (4) M 3y[

    3yl, yh

    4d

    1y,p

    G15G2

    , Gj

    2

    1y

    2y 5 s1

    1p

    G15G2

    21

    s2

    1p

    G15G2

    2.

    Ou umtio o m, uy, t iom itibutio imy tt t i uiqu

    i tt ov qutio (4). Howv, bu i ti i all ouo iit

    Figure 1. Impact of Changes in the Level of Public Goods on Community Populations

    note: T v o t ubi goo i Commuity 1, G1, i iig og t oiot xi. T v o t ubigoo i Commuity 2 i x t G2.

    $#"

    .

    (

    1PQVMBUJPO

    $PNNVOJUZ

    $PNNVOJUZ

    G1

    1

    G0

    1

    G2

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    btw ommuiti, i quiibium w bitiy wit t o ouo btw t

    two ommuiti og t gggt ouig m i t i iti.

    PROPOSITION 3: imG1SG2p1 5 imG1SG2p2 5 p

    G15G2, imG1SG22 pOp1 . imG1SG21 pOp1,

    imG1SG22 pOp2, imG1SG21 pOp2.

    I ot wo, t quity oG1 u G2, t i i Commuity 1 i mooty,

    wi t outio o iotiuouy.

    To ti, w bgi by oiig two t quiibi u t oG1 5 G2

    p1 5 p2 5 p

    G15G2. Fit, oi t wit omt oitiv iom otig. I ti ,

    ouo wit iom t om iom v, ot Y~2, ot i Commuity 1

    ot ot i Commuity 2. T o quiibium i iti, xt tt t iom

    otig i v ouo wit iom gt t om v Y~1 ot i Com-

    muity 1 ot ot i Commuity 2. Not tt, giv t umtio tt ouo

    ouig m it oG, Y~2 Y

    ~1 uiquy tmi by t mkt -

    ig oitio wi tyiy i. Giv ou umtio gig w-bv utiity m utio, Y

    ~1, 2 5 Y

    ~2, p1 5 p2 5 p

    G15G2i t imitig quiibium G1 o

    G2 om bow, Y~

    1, 2 5 Y~1, p1 5 p2 5 p

    G15G2

    i t imitig quiibium G1 o

    G2 om bov. Tu, p1 p2 otiuou utio oG1 imG1SG2p1 5 imG1SG2p2 5

    p

    G15G2.

    W ow v oy to ow tt t otiuity o i t G1 5 G2 imi tt imG1SG22 pOp1

    . imG1SG21 pOp1. To ti, ot tt w o G1 5 G2 om it i, i

    bitiy o top

    G15G2. At t imit, outio tmi by t mkt ig oi-

    tio vut tp

    G15G2. But, bu iom otig i omty v G1 x G2,

    w t imit i o om t t, t iom o ouo ooig Commuity 1

    ow t w t imit i o om t igt. Moov, it ouig m i ig o i ouo. Tu, w vut t p

    G15G2

    , t mkt ig

    oitio imi tt Commuity 1 outio i ig w oig t imit om t

    t t w oig om t igt. Tu, ov om g oG1, i i G1 tt tk

    it bov G2 to i Commuity 1 outio.

    A tivi ooy to Pooitio 3 i tt y g i G1 tt v t oig o t

    two ommuiti i tm o ti ubi goo v (tkig G1 om v bow G2 to

    v bov G2) wi to umbiguou i i t tiv m iom o t two

    ommuiti.

    PROPOSITION 4:Ip1/G1 ap2/G1are boue away rom ero, the eve i caewhere imrovemet i G1 caue it to excee the level o G2, or ufcietly large icreae i

    G1, thi icreae will till reult i a icreae i pOp1.

    Pooitio 4 oow ity om t t tt i i G1 iv t i i

    Commuity 2 bitiy o to p2l, tu uig it outio tow o t outio

    o Commuity 1 bitiy o toM.

    To iy t imitio o t ooitio, Figu 1 g t outio o Commu-

    ity 1 Commuity 2 utio oG1, oig G2 ott. A G1 i, t ou-

    tio o Commuity 1 i vyw but t G15G2, ow by t oi i i t gu,

    wi t outio i Commuity 2 vyw but t G15G2, ow by t

    i. Poutio wy um to M. Now, oi t w G1 i imov om ii-ti vu oG1

    0. Sm imovmt tt k G1 bow G2 (Rgio A) ut i i

    i t outio o Commuity 1 tiv to tt o Commuity 2 , iu bov,

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    VOL. 98 nO. 3 849BAnzHA And WALsH: An EMpIRICAL TEsT O TIEBOUT

    itmit g i relative iom. O G1 i bov G2 (Rgio B C),

    t iom otig i v t i umbiguou i i Commuity 1 iom

    tiv to Commuity 2. Howv, o m i bov G2 (Rgio B), t i tuy

    o i Commuity 1 outio tiv to Commuity 2. Fo g i i G1 (ito

    Rgio C), t i gi i i t tiv outio o Commuity 1. It ou o bot tt ti xm w iy otut to gut t xit o Rgio B. I,

    it, G1 iitiy b t v G11, t ay i i G1 wou to tiv i

    i Commuity 1 outio.

    To ummi, t mo it tt mgi i i G1 wi to tiv i

    i t outio o Commuity 1 mot vyw (i.., t but o oit). Lg i

    i G1 iky to v t m t, wit t o xtio big t w G1 jut u-

    G2, o tt t iom t o ouig m omit t outio t. T

    mo o it tt g i i G1 wi b oit wit i i Commuity 1

    vg iom tiv to tt o Commuity 2.

    A.Emirical strategy

    O ou, wt t g i t outio miio t o outig ii-

    ti tui otitut g o m g i mii qutio.4 W tu tk

    t yot to t t tt o t (i i tiv outio oow-

    ig imovmt i ubi goo) iom t.

    Ou yi i t mu v o gggtio t viouy b oi i

    t ittu, ouig o ommuiti by -mi-imt i. To tt o

    iom t, w t 19902000 g i ommuity outio (i v tm

    tg tm) g i iom to g i xou to i outio. Eviomt

    quity i mu t toxiity-wigt xou to i outio om it iti t Toxi R Ivtoy.

    W moy i-i-i ig o t t o 19902000 g i outio

    o 19902000 g i t mogi mu. O otti wk wit ti y-

    i i tt i m it ti iiti b o o mogi o ot oouig to,

    t tioi btw g i outio g i mogi wou b og-

    ou. To ti obm, w o itiy gg mogi o to TRI it tt

    t t mogi g, to b tt xogou. W iu t

    ot ititio iu i mo ti oowig itio o t t.

    II. Data

    Cotutig t tt y to tt o viomty iu migtio qui

    t t tk. Fit, w itiy t o tiy it ommuiti. So, w o-

    tut mogi omoitio mu o ommuity o 1990 2000. Fiy, o

    ommuity w otut mu o t toxiity-wigt v o xou to i ou-

    tio i 1990 2000 b o t om t Toxi R Ivtoy o t US Eviomt

    Pottio Agy (EPA).

    4 I viou mii wok wit itio o-uto (Sig t.. 2004), w timt tutu mo, imii otutio to t toti mo t , uig o-tio t o t Lo Ag MtooitA. Tt mo uggt tt 19901995 i quity g wou v iu 90 t o t ommuiti(oo itit i tt mo) to g ti tiv k, oig i quity i ot ommuiti t biv. Ti uggt tt ou mo mii itio o iom t om omgi g iky tob miiy vt o t TRI oig tui .

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    JUnE 2008850 THE AMERICAn ECOnOMIC REVIEW

    A.defitio o Commuitie

    Ou yi qui t o ommuiti wo boui mi x btw 1990

    2000. O o wou b to u u tt, bok gou, o bok ou ommuity -

    iitio. Ti o i obmti bu t itio g. B (1997) ou tt,

    tioy, o-t o tt g boui btw i u. Moov, t

    u o u tt ommuiti my it b obmti o t o. Fit, u

    tt oy to t tivy omogou titi. Atoug om ti

    vitu bu it giv mo itgity to t ot o ommuity, u gymig my

    o bi mii timt. Fo xm, i outig it v imt o t mog-

    i o oy t mot o igbooo, t igbooo ojoi wit ot

    igbooo wit imi titi to om u tt, it wou iu otio

    btw t outig it t wi gogi tity (t tt). So, toug ougy

    qu i outio, u tt g gty i i. Fo xm, i Cioi, tt g

    om t tt o qu mi to mo t tou qu mi. Ti g g

    o ti togity t obm w timtig migtio mo, y imt o outig iity my b iut w vgig ov g , but ot i t m to

    wi t g my b om. Fiy, viou o t otio btw

    mogi viomt quity ow tt ut b quit itiv to om-

    muity itio (Doug L. Ato t . 1994; Robt H 1995). Cu tt my b

    too gggt uit , i y , u itivity yi og t i.

    Fo t o, w tk it o to igbooo itio. W ig-

    booo t o -mi-imt i (ttivy o-mi-imt i) vy

    itibut o ou tuy . Uig t GIS otw kg ARCVIEW, w otut

    wigt tt u to tt viomt quity t om t TRI mogi t

    om u bok to ou ommuiti.

    T i o t t otutio oow. Fit, to k t t tk mgb,

    w tit ou yi to Cioi. Cioi i tttiv bu o it i togity

    bu o it tiv i. To ut tit t i o t t tk to u t t-

    ogity btw it ommuiti, w imit ou yi to otio tt w ot

    ub i t 1990 Cu. W otut ou ommuiti by t ig quiitt gi

    o ou tuy . Gi oit o- mi t o t -mi i o mi

    t o t o-mi i.5

    O gi tt ov t ti tt v b otut (o o t -mi

    o-mi i) qut-mi (-mi) bu i ou oit i t gi, yi-

    ig t o i -mi (o mi) i imt tt vy itibut o t tt.

    T t o i tt witi t Cu 1990 ub boui i t t, i tt i o wt o. Ti o yi 6,218 ommuiti witi o-

    mi i 25,166 ommuiti b o -mi i. Figu 2 ow t itibu-

    tio o ommuiti o t tuy .

    B. Ceu data

    A ot bov, w gggt mogi t om t 1990 2000 Cu ito ou

    i-ommuiti. W ot bok-v t o t tot outio, i tm o bot

    5 Bu o t i o Cioi, t it btw i o ogitu vi by oximty 13 t o mov om it out bo to t ot bo. To voi uv mig ity btw ot out otio o t tt, it i y to out o ti vitio. I tiu, t gi otut uigt oowig to: 1 g o titu 5 69.172 mi 1 g o ogitu 5 o (titu) * 69.172.

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    iiviu ouo, oomi vib iuig omowi t, t

    t, - om vu. W o ot bok-gou-v t, iuig v-

    g iom, utio ttimt, woko ito.

    Dmogi out t t ig to ou ommuiti. Siy, o bok,

    o mogi out i ig to ommuiti b o t tg o t

    bok gogi yig witi ommuity.6 Ev o ou -mi ommuiti,

    mot bok ig tiy to ig ommuity, 99 t ig to v ow. Tb 1 ummi t ooit mig, t umb o bok ig to ommu-

    ity. Bu o t ittig o bok btw 1990 2000, t mo bok ig

    i i 2000 t i 1990. T tit ti g om ow o 10 bok i

    o -mi i (1990) to 38 o o-mi i (2000).

    Tb 2 ovi itiv ttiti o t mogi titi o t -mi om-

    muiti. Not tt ty iy omb, i ty i o qu i (oxi-

    mty 0.785 qu mi). Mot ommuiti v m outio, wit vg 1990

    outio o bout 772 o, but wit wi itquti g o 98 to 1,162.

    6 Fo bok gouv t, t vu w itibut to t bok b o outio , t itibutto t ommuiti o t bok-v t.

    Figure 2. Location of Communities

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    C. TRI data

    A mu o outio xou, w u t EPA Toxi R Ivtoy to

    o i outio t iiti tougout Cioi. T it my b iv imitytoug v . Fit, ty my imy b viuy utttiv it. So, ti i

    outio my v ut oo o my u itoy iittio. Fiy, i 1987,

    iiti ig mo t 10,000 ou y o ti ou mi v

    b qui to ot t miio. T t t bm ubiy vib i 1989

    outiy ubii by viomt tivit. Bu t t t bm vib

    immity io to ou 19902000 tuy io, w migt o xt to gg migtoy

    o to i miio.

    Fo ou mu o xou, w u toxiity-wigt ix o miio i t TRI7

    b o wigt vo by t EPA vib i it Rik S Eviomt Iito

    7 T it o otig mi x i 1994. To miti oitt omio o TRI miio ovtim, w v imit t t to t ommo t o mi u i 1988. Ti jugmt ou ot mk mu

    Table 1Assignment of Census Blocks and TRI Emissions to Circle Communities

    H-mi i O-mi i

    Cout 25,166 6,218

    Bok i (1990)

    25t ti 4 1150t ti 10 2975t ti 19 55Mx 132 383

    Bok i (2000)25t ti 6 1750t ti 13 3875t ti 22 64Mx 136 408

    Ci wit TRI xou-mi bu 3,109 1,295-mi bu 5,179 1,795

    TRI it o xo i-mi bu

    25t ti 1 150t ti 2 275t ti 3 4Mx 19 25

    -mi bu

    25t ti 1 150t ti 2 275t ti 4 5Mx 27 34

    Ci oo itit25t ti 45 1450t ti 93.5 27

    75t ti 169 47Mx 2,352 620

    Ci i o25t ti 11 350t ti 21 675t ti 35 9Mx 190 49

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    mo (RSEI).8 Bu o t TRI otig to ti -ot tu, t t

    ivov om mumt o, wi i iky to v ovtiv t o ou ut,

    biig tm to o ( Sott Mi Jm T. Hmito (2006) o vutio o t

    t). I itivity y, w o oi owigt miio t im

    o outig it.

    T titu ogitu o iity w tk om t u quity oto

    yi by t EPA.9 Ti gogi iomtio ow mt o iiti to ou ommu-

    iti. W otut bu (qut-mi -mi) ou TRI it t ig

    miio om giv TRI it to t ommuiti tt i witi t giv bu. T m

    o TRI it i t 2,311 Cioi TRI it ot u tt -mi bu itt tt o ommuity. Figu 3 iutt t o u to ig miio o t o

    -mi TRI bu o-mi i. I t gu, t i -mi bu

    ou ou TRI it. T u i ommuiti. Emiio om giv TRI it

    ig to ommuiti b o t tg o ti bu tt i witi giv om-

    muity. Fo it, i Figu 3, 3.1 t o t miio om TRI it A ig to

    ommuity N1, 17.9 t to ommuity N2, 52.4 t to ommuity N3. I ti wy,

    i, t w outt ou t otio btw 2000 miio wit witout tw mi i 0.94.

    8 Iomtio bout ti mo i vib t tt://www..gov/otit/i/.9 Ti quity oto yi ovi it uy o it otio t. Fit it o

    bu o oo-quity go-oig t.

    Table 2Descriptive Statistics of the Data for Half-Mile Circle Communities

    Baelie emograhic ata (1990) Mea staar eviatio

    Poutio (ity) 772 930S bk 0.05 0.11

    S Hii 0.19 0.20S Ai 0.08 0.10S ot mioity 0.01 0.02Ptg ouo wit ig-t mii 0.08 0.07M t t ($) 689 263M ouig vu ($) 229,872 138,199S owig ti om 0.66 0.27Ptg moy 0.94 0.05Ptg o moy i mutuig, i moy 0.15 0.08Ptg ot gutig om ig oo 0.10 0.07Ptg wit bo g 0.49 0.14Avg ouo iom ($) 46,461 21,551

    Chage i emograhic (19902000)Poutio 92 256

    Iom 23,035 24,086TRI ataS wit bi TRI xou (19881990) 0.10 NAS wit w TRI xou (19982000) 0.01 NAS oig TRI xou (19982000) 0.04 NABi miio 300,714 4,718,020Bi miio, mog to xo 3,006,542 1.467

    Locatioal ata1990 FBI im ix 0.08 0.28Cg i im ix 0.03 0.14Dit to ot 47.2 45.3Dg titu 35.41 2.03Soo o i o x t NA NA

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    JUnE 2008854 THE AMERICAn ECOnOMIC REVIEW

    w oitty gggt miio v om muti TRI it ito tot xou i

    ommuity.

    Tb 1 ummi t igmt o TRI it, tiv t om tim uig t 19882000

    tim io, to ommuiti o ommuity-i, bu-i i. Fo to ommuiti

    tt xo to t t o TRI it, t tb ummi t itibutio o t umb o

    it to wi ommuity i xo. I , t tit ti i two it, wit

    t mximum xou goig ig 34 it i t o o-mi i o-mi

    TRI bu. O ommuity bi, Tb 2 iit tt 10 t o -mi ommuiti

    w xo i t bi io (19881990), wit 4 t oig xou by 19982000

    1 t giig xou. T tb o ot m toxiity-wigt xou mog

    ommuiti mog to xo.

    D.Aitioal satial Variable

    Sv to, iuig ot tiy itibut miti, iky to iv otig

    o ommuiti ou b oto o w. A oto, w iu im t

    , i om mo, o otio mu, iuig it to t ot g

    titu. Howv, ou mi o to otoig o uobv ti miti i o

    x t. W u two t o x t: oo itit i o. Bot vy o

    mu tt oitt wit t otio tt ouo iky to oo g

    b o ot to t ot witi tt b o t mot o miti. Sooitit v t vtg o mig ity ito imott o ubi goo wo qu-

    ity i otwi otoiouy iut to mu, owig u to o itit v quity

    Figure 3. Half-Mile Buffers (Shaded) and Circle Communities (Unshaded) around Four TRI Sites

    note: # igt TRI it.

    /

    /

    /

    "

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    g i quity ott i ou omio. W t o ommuity tt

    witi o t 226 oo itit i ou ub ig otiuou vib o

    [0,1] to tt ommuity o oo itit. Svty-ix t o -mi ommuiti

    i tiy witi o oo itit, 21 t witi two, t miig 3 t witi

    t o ou. Tb 1 ow t itibutio o t umb o ommuiti ig witi oo itit. Zi o v mo o mu. H, w ig ommuity to o

    o t 883 i o i ou tuy b o t i o o t ommuity toi. Tb 1

    ot t itibutio o ommuiti o i o. T mi i o i ig 21

    -mi i 6 o-mi i.

    III. Estimation and Results

    Uig t t, w tt o iti g i ommuity outio iom tt

    iu by g bi i i TRI miio. Ou imy ut t

    o mo uig -mi-imt ommuiti -mi-imt bu ou TRI

    iiti. W oi tiv o-mi imt i itivity y.

    A.Etimatio strategy

    T togt itio o t Tibout mo i tt t itoutio o TRI iity ou

    u iiviu to v t ommuity ( tt t xit o iity ou u tm to t).

    To tt ti yoti, w g bot v g tg g i outio om

    1990 to 2000 o bi TRI xou, g i TRI xou, itio oto.10 To tt

    o iom t, w u g i m iom t t vib. A iu bow,

    w o oi omti mtig timto ttiv to i gio.

    TRI xou i mu t t-y gg vg, o tivy o 1990 2000, o t toxiity-wigt miio o t 1988- mi, ot to

    ommuity ib viouy. A xou vib, w iu mu o bot ok

    bi xou. A ok, w iu it iito o w ommuity g

    ttu om xo to ot xo (o vi v), u otiuou mu o t g i

    miio v (wi ik u t mgitu o to tig o xitig iiti w

    g t to otiuouy mittig). Bu i ity outio o ot jut itt-

    ouy, w o iu iito otiuou mu o 1990 xou to ik u gg

    tio to viou xou. T gg o my b tiuy imott w w

    oi tt miio v w ot ot io to 1989.

    T mo o t t gio yi i t i qutio (5):

    (5) pOpi5 d01dBLIiBL1dnEWIi

    nEW1dEXITIiEXIT1dyyi

    19901dy1(yi|yi . 0)

    1dy2(yi|yi,0)1ddDi1dLLi1 ui ,

    w pOp i t g (o tg g) i outio om 1990 to 2000;IBL, InEW, IEXIT iito vib o wt t ommuity y 1990 bi xou,

    wt om o xou to om xou, o wt om om xou to o xou; yi1990i

    t v o bi toxiity-wigt xou; yi|yi . 0i t g i toxiity-wigt

    10 To vo ob itio o tg g, w u t vg o t 1990 2000 v i tomito. Witi ou t, ti mu i oximty omy itibut i bou bov bow by12 2, tivy.

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    xou, i oitiv; yi|yi,0i t g i toxiity-wigt xou, i gtiv.Di

    t mogi vib Li t otio vib. Fo gio mo

    o iom t, pOpi i imy by InCi.

    To tt ou mo itio, w ou o t ttmt t. T vg t o

    bi TRI xou timt t vg iti t o igbooo 19902000outio g om big xo to TRI miio i 1990. T vg t o w

    TRI xou timt t vg iti t o viouy uxo igbooo

    o bomig xo to TRI miio. A t vg t o xitig TRI xou ti-

    mt t vg iti t o viouy xo igbooo o oig it TRI

    xou. T ttmt t ut ombitio o t timt oit o

    bot iito otiuou vib. Siy,

    (6) Avg bi ttmt 5 dBL 1 dy

    a1

    NBL

    i[BL

    yi1990

    b,

    Avg w ttmt 5 dnEW1 dDy1a 1NNE i[nEWDyib ,Avg xit ttmt 5 dEXIT1 dDy2a 1

    NEXIT

    i[EXIT

    Dyib ,w, o xm,nBL i t umb o ommuiti wit bi xou. Tu, t ti-

    mt t o vg bi TRI xou, tiv to o xou, i t timt o-

    it o t iito vib o xou, u t timt oit o t otiuou

    mu o xou tim t vg bi xou mog to ommuiti wit b-i xou. Simi ogi o o t t o w xitig xou. Not tt t t

    two ttmt tiv to ommuiti tt v xi xou, wi t xit tt-

    mt i tiv to t t o ommuiti tt bi xou.

    W timt ou bi gio mo wit it v o oto o oouig

    to (t D L vib). Ou t mo iu o oto. Wi y kig y

    t to itiyig uity, ti mo o giv ig to t otio btw

    migtio g xou. Ou o mo oto o t bi mogi vi-

    b it i Tb 2, u qu o t tm. A imott ti mity, it o

    iu t FBI im t imut om ovig oiti juiitio ti t

    mu by titu it to t ot i kiomt. Ou ti out mo o-

    ti t m mogi oto but t ti vib wit oo itit xt i o x t, tivy. Fiy, mo timt wit witout

    bi outio wigt o t ommuiti.

    Bo tuig to t ut, w oi om o t otti imittio oit wit

    t t wit ou ximt ig, w iu ti imitio o ittig

    ou ut. I mot , t otti imittio wi t to bi ou ut tow o, o

    tt ou tt b ib ovtiv. Fit, ot tt w tiy omig

    ttmt ommuiti witi ou TRI bu to oto ommuiti outi tm, but w

    ot kow t true o imt o t TRI iiti. I TRI iity tu imt i

    ow t ou bu, t ttmt ommuiti wi b otmit by oto ,

    iutig t iti. O t ot , i it tu imt i wi t ou bu, tTRI iiti wi v om imt o ou oto ommuiti, gi iutig t iti-

    iti. Moov, ti tt t i tut by ou o x t, i t

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    t oto ommuiti t mot iky to o b t by t TRI iity. Tu, w

    tiy itiy oy t ieretial t o t outig iiti o t t ( mot

    t) ommuiti tiv to t xt-t.

    So, ot bov, TRI miio o b o to qutiti o ii-

    viu mi by t iiti. Ti uggt tt om ow-v miio go u-tt. To t xtt tt ti i tu m tt om ommuiti igo oto i

    t xo, t timt iti i gi iut. Fo t o, i w migtio

    t wit t t, uig ti ig, w v o to b ot i t xit o

    Tibout t t to outio.

    Fiy, oi t otti iu t to ogity o t ttmt. Ou bi tt-

    mt t togt im to xogity, i itoi xou ot b t oqu

    o utu g i o mogi. Howv, two otti obm i wit ogity

    o ou w ttmt xit ttmt. Fit, g i igbooo TRI miio

    iky oit wit g i tt igbooo oomi oitio. Su g i o-

    omi oitio oby b xt to b oit wit g i t igbooo

    outio /o mogi mix, ig to obm o ogity bi timt.Simiy, m iio bout oig oig outig iiti my b m ty i

    o to g i o bo mkt oitio. Ou o to t o i t iu-

    io o t o ti x t o oo itit o i o. T vt ti o

    oiig oomi oitio bo mkt ootuiti i otio oi i iky

    mu wi t t o viomt miti. I bo ot oomi ootuiti

    ougy qu witi giv oo itit o i o, but i t viomt imiti

    (tu outio xou, m, o igt) o outig iity i by ou -mi ommu-

    iti witi to , titig omio to big witi t oo itit o i o

    toug x t wi tivy imit t ogity obm.11

    A mo toubom obm wit ogity i o ou w xit ttmt i o-utig m mk ty xit iio b o t mogi o t ommuity t

    by t imity . Not, owv, tt t vt iu i ot t bi mogi

    o t t ommuity but, t, m o to orecatechage i mogi

    om 1990 to 2000.

    B. scale Eect

    T ut om ou -t mo t i Tb 3A 3B. Bot t wigt

    t uwigt mo t oby w giv t o-tio tu o t t, wit

    R2 o 0.04 to 0.18 o mo wit oto but o x t 0.09 to 0.58 o t x

    t mo. Ai om t imott imt o t TRI it, w tt ommu-iti gi mo o om 1990 to 2000, o ommuiti wit ow ouig i but

    ig t t. W o ttitiy igit oi jutmt to bi i

    omoitio.

    Tb 3A t t timt t oit wit toxi miio om TRI it

    om t uwigt gio. T tb iu timt o mo wit g i ou-

    tio v tg g i outio t t vib, o o t t

    11A uibiity k o ti ttgy, w om t it ttmt t om mo tt iu oto oy i o x t to mo tt iu o ou oto i itio to t i o x t. It i o x t i to oto o obv oouig to, o migt ito qutio t umtiott it oto o t t ouobervetiy vyig ovit. W tt t i o x t otoquit tivy o t obvb ovit, wit oit timt o t ttmt t o o it-v ovig o t two itio.

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    ttmt t. Bot t g i v tg g mo ovi ttitiy ig-

    it, oiy-vt vi o migtoy t oitt wit t Tibout yot-

    i. Fouig o t tg g mo, o vg, bi xou to TRI miioi oit wit tiv outio i tt g om 10 to 16 t, ig o t

    mo. Likwi, t o w toxi miio i viouy utt igbooo

    i oit wit outio i btw 5 9 t. Fiy, t mo it o-

    itt o i t ooit itio o ommuiti tt o xou. O vg, t

    ommuiti it to xi outio gi o 5 to 7 t.

    T uwigt mo tk ommuiti ti uit o yi. Ty t toy bout

    wt i ig t it . A u, w viw ti o oit o vu-

    tig t t o Tibout o o tiy itit igbooo. Fom oiy

    tiv, owv, w migt b quy itt i utig t vg t o t

    g o t outio. To btt ut ow outio bvig, w u t

    gio wigtig by t bi outio. T wigt gio ot iTb 3B. T tb iit imi quittiv tt o migtoy o, but wit v

    t omwt ig tg t mu ow t t uwigt gio.

    Ti ut i ot uxt, i t wigtig m uwigt -out ,

    w g tg g i outio mo iky to ou. I g, t t

    otiu to b ttitiy igitwit t xtio o t timt t o w TRI

    xou, wi mi gtiv but o igi i om mo. W itt t

    ut tog vi i uot o t t it by ou toti mo.

    To viy t obut o t ut, w moy g umb o itivity y.

    Fit, ttiv to g i outio, wi ou b ty t by miy i

    g, w u g i t umb o ouo t t vib, otiu-ig to quittivy imi ttitiy igit t. So, w it t

    ot mo wit o-mi-imt (vu -mi) ommuiti. Fo bi xou,

    Table 3AEstimated Scale Effects: Unweighted

    Avg t obi TRI xou

    Avg t ow TRI xou

    Avg t oxitig TRI xou R2

    Eect o oulatio level

    No oto 30 (,0.01) 13 (0.37) 43 (,0.01) 0.00Bi oto 54 (,0.01) 35 (,0.01) 39 (,0.01) 0.07Soo itit x t 59 (,0.01) 35 (,0.01) 42 (,0.01) 0.11

    Zi o x t 71 (,0.01) 36 (,0.01) 45 (,0.01) 0.26

    Mtig timto 32 (,0.01) 27 (0.16) 31 (,0.01)

    Eect o ercetage chage i oulatio

    No oto 15.6 (,0.01) 5.3 (0.29) 7.1 (0.04) 0.00Bi oto 10.7 (,0.01) 7.3 (0.11) 5.0 (0.09) 0.04Soo itit x t 10.3 (,0.01) 8.3 (0.07) 6.1 (0.04) 0.09

    Zi o x t 12.0 (,0.01) 9.3 (0.05) 6.3 (0.04) 0.19

    Mtig timto 10.7 (,0.01) 12.11 (0.05) 4.3 (0.04)

    note: St o o mtig mo b o Abi Imb (2006). Bi oto iu titu, i-

    t to ot, 1990 im t, g i im t, 1990 outio ity, m t ymt, m ou-ig vu, t t o ouo owig ti om, t t moy i mutuig, t t witout ig oo iom, t t wit bo g, ouo iom, t t o t outio tt ibk, Hii, Ai, o ot , t t o ouo wit ig-t mii, qu o tmogi vib. Fix t mo t m wit t xtio tt t vt x t ti-tu it to ot.

    S qutio (6) o itio o t ttmt t. -vu o ttmt t i t.

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    t t o gt mgitu (v i tg tm) o uwigt mo , o

    wigt mo, ikwi gt o t mo wit o oto bi oto, but

    quit imi o t mo wit x t. T timt t o w xitig TRIxou o imi.

    Ti, w tt my ttiv itio o t xou vib. I tiu, w u

    o-mi bu ou TRI iiti it o -mi bu. W o u 1990 2000

    miio oy (t t t-y vg), w miio v uwigt by toxiity,

    mu o miio tt tt iity quy (o tt ommuiti i oy i t

    umb o TRI it to wi ty w xo ti oximity to to ommuiti). No

    o t itivity y g t quittiv tu o t ut, toug t tt mo

    i ow t mgitu o t t, uggtig tt tu outio v imott.

    Fout, w o timt t mo o ubt o t t: o oy to ommuiti

    wit o bi xou, to timt t t o w xou; o oy to ommuiti

    wit bi xou, to timt t t o oig xou; o oy to ommuititt o ot g ttu ov tim, to timt t t o bi xou. No o t

    vitio g ou ut. Fit y, to x t titio tt ttmt t

    t m tougout Cioi, w oi t y o t LA mto o

    t S Fio By o, but gi ou imi ut. Tu, ou vi i igy

    obut togy oitt wit t Tibout yoti.

    C.Icome Eect

    Atoug ou toy mo ovi tog itio gig t, it it

    iom t oy o g g i ubi goo tt t t tiv kig o t om-muiti. Nomgi g i xou u by xitig tig TRI iiti my

    w quiy u g. I y , t iom t mi o mii itt.

    Table 3BEstimated Scale Effects: Population-Weighted

    Avg t obi TRI xou

    Avg t ow TRI xou

    Avg t oxitig TRI xou R2

    Eect o oulatio level

    No oto 46 (0.07) 18 (0.43) 81 (,0.01) 0.00Bi oto 81 (,0.01) 39 (,0.01) 71 (,0.01) 0.18Soo itit x t 84 (,0.01) 31 (0.13) 78 (,0.01) 0.25

    Zi o x t 108 (,0.01) 42 (0.07) 78 (,0.01) 0.58

    Mtig timto 43 (,0.01) 42 (,0.01) 46 (,0.01)

    Eect o ercetage chage i oulatio

    No oto 2.6 (0.11) 0.8 (0.50) 3.0 (0.02) 0.00Bi oto 3.6 (0.01) 0.7 (0.58) 2.6 (0.03) 0.05Soo itit x t 4.0 (,0.01) 1.0 (0.38) 3.0 (0.01) 0.10Zi o x t 4.7 (,0.01) 1.6 (0.19) 2.9 (,0.01) 0.24

    Mtig timto 1.1 (0.16) 3.9 (0.01) 1.7 (,0.01)

    note: St o o mtig mo b o Abi Imb (2006). Bi oto iu titu, i-

    t to ot, 1990 im t, g i im t, 1990 outio ity, m t ymt, m ou-ig vu, t t o ouo owig ti om, t t moy i mutuig, t t witout ig oo iom, t t wit bo g, ouo iom, t t o t outio tt ibk, Hii, Ai, o ot , t t o ouo wit ig-t mii, qu o tmogi vib. Fix t mo t m wit t xtio tt t vt x t ti-tu it to ot.

    S qutio (6) o itio o t ttmt t. -vu o ttmt t i t.

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    To tt o iom t, w timt t t mo uig t vib

    t g i vg ouo iom om 1990 to 2000. T t i oby goo wit

    R2 o 0.31 0.42 o mo wit ttiti oto but o x t, 0.41 to 0.60

    o mo wit x t. Tb 4A t t t o vg TRI xou uig t

    uwigt mo. Bi TRI xou u ommuiti to v iti gowt ivg iom o bout $2,000 o $3,000 t tt xi by t oto. Coitt

    wit t m umb o ommuiti giig xou, t w xou ttmt gy

    o ot v ttitiy igit t, toug i t itio w it o, t

    t i i t xt itio o ow iom gowt. A xt, oig TRI xou

    gy t ooit t, t t ttitiy igit o mot mo.

    Ou ut ot obut to wigtig by outio, ot i Tb 4B, wit om o

    t mt timt bomig ttitiy iigit, toug gi w ty ig-

    it ty oitt wit xttio. W o ubjt t mo to t m -

    itivity tt ib bov o t t, gi ou quittivy imi ut.

    Coitt wit ou itio o g g i ubi goo, t ut ovi i-

    tio vi i uot o Tibout mim.

    D.nearet-neighbor Matchig

    A ot bov, w vi o oi migtoy o to bi i omoi-

    tio, uggtig it my b iut to oto o t t mtiy. To btt out o

    t utity bout utio om, w o omtiy mt ommuity iv-

    ig TRI ttmt to t o oto ommuiti wit imi obvb titi,

    t om ti migtio tt. Symmtiy, w mt oto ommuity

    to t o ttmt ommuiti wit imi titi. U oto ximt,

    ttmt i giv omy o tt, by ig, t xt vu o uobv vib t m i t ttmt oto gou. I qui ximt, ttmt ottmt

    obvtio gou by ot obv vib om oitio o to vi-

    b. I ou , t t ttmt t o bi TRI xou mog t t

    o ommuiti tt o ot g xou ttu ov tim; t mov to xou mog to

    ommuiti tt i ot xi bi xou; t ig o xou mog to

    ommuiti xo i t bi. T t ttmt itio mio t timt

    ttmt t om t im i mo t i Tb 3 4.

    Ti o x t o utio om umtio bout t otoig vi-

    b. Fut, it wk t y umtio gig t o tm, quiig oy

    tt, oitio o t obvb, t xt vu o t o tm i qu o t tt-

    mt oto . Ti i i ott to t i umtio tt, oitio o tobvb, t xt vu o t o tm i o. (S Jm J. Hkm, Hiiko

    Iimu, Pt To 1997, 1998; Rjv H. Dji Sk Wb 2002.)

    U t t mtig mo, obvtio gou by vu o t obvb

    (bi i omoitio, ity, ot otio miti o oxi) , witi

    , i i outom btw tt utt obvtio ut.

    Howv, t umb o qui to o ti b oibitivy g. Pu R. Robum

    Do B. Rubi (1983) ow tt w g umb o obv vib t too

    my mty , o , it, mt o uivit ix tig ov it i

    t o obvb btw ttmt obvtio it mt oto().

    W timt t Euii it btw ommuiti i t o t m t oobvb om t gio mo. T uiv o otti oto ommuiti i

    to imit oouig ttmt. Fo ommuity ivig o o t tiv TRI

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    ttmt, w om it iom t to t vg mog ou t (mot

    imi) oto ommuiti. T i, t timt ttmt t, oo to

    t t tm i qutio (6) (witout t otiuou tm). To out o t otti bi

    oit wit omio wit oto ommuiti vig igty it obvb, w

    jut o t i uig i gio.12

    T t ow i tio o Tb 3 4 ot t m vg ttmt t omt t-igbo mtig timto. St o omut uig t o o-

    o by Abto Abi Guio Imb (2006). Quittivy, mot outom ug

    om t gio mo oitt wit ou iv yot, wit o xtio.

    Fo t w xou ttmt, t outom o t w t (but ot tg

    g) v ig.13 Ov, owv, t ut ovi mo vi o t

    iom t it by t mo.14

    IV. Conclusions

    Tibout uggtio tt o vot wit ti t to t ommuity tt ovi ti

    otim tx ubi goo i y t o i t toy o o ubi i t to t tuy o umou oiy iu iuig oo quity, outio, ouig

    12 I tiu, w timt i gio o t tiv outom o titi mog oto om-muiti. W mtig, w t t out t t it to b u to t i i obvb vib. Tti, w t out b 1Xtreat2 Xcotrol 2 , w X t t vto oyi, Di, aLi.

    13 Ti omy i imit w ouig o t vg t mog tt ommuiti oy, i ott tot vg t o t ti m. It i o imit w uig y umb o mt tt mt tit it-io o imiity, t t wy ou. Bot o t quitio uggt t ig g i iky t ut ot m umb o w ttmt vib o mtig to t oto ommuiti.

    14 I itio to t im t-igbo timt ot , w o timt t ttmt t byut titig t mt to to oto ommuiti ot witi t m oo itit t tt om-muity, o ogou to ou x t gio mo. T ut mi ug w w titt mt to to witi t m oo itit.

    Table 4AEstimated Income Effects: Unweighted

    Avg t obi TRI xou

    Avg t ow TRI xou

    Avg t oxitig TRI xou R2

    No oto 7,619 (,0.01) 7,652 (,0.01) 1,899 (,0.01) 0.01

    Bi oto 2,618 (,0.01) 624 (0.52) 1,344 (0.06) 0.31Soo itit x t 2,458 (,0.01) 277 (0.75) 1,693 (0.01) 0.41

    Zi o x t 2,194 (,0.01) 189 (0.82) 1,416 (0.03) 0.50

    Mtig timto 3,182 (0.01) 6,115 (,0.01) 530 (0.33)

    S ootot o Tb 3.

    Table 4BEstimated Income Effects: Population-Weighted

    Avg t obi TRI xou

    Avg t ow TRI xou

    Avg t oxitig TRI xou R2

    No oto 3,951 (,0.01) 5,205 (,0.01) 784 (0.18) 0.01Bi oto 362 (0.33) 216 (0.77) 35 (0.94) 0.42Soo itit x t 179 (0.62) 937 (0.18) 22 (0.96) 0.51

    Zi o x t 222 (0.55) 795 (0.23) 126 (0.76) 0.60

    Mtig timto 2,433 (,0.01) 2,015 (,0.01) 30 (0.93)

    S ootot o Tb 3.

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    oiy, txtio. Dit it imot, ti mo b ubjt to w it tt o

    it bi mim: ouo jutig otio i o to g i t miti.

    Tow ti , w u g i t miio o toxi i outt o tiy i-

    t igbooo to tt o viomty motivt migtio tt oit wit

    i m o i imovig igbooo, wi my t t mogimix btw i oo ouo. Uig w o to ommuity itio tt

    ovom t obm oit wit t u o u tt, i ojutio wit btt

    oto o ottiy oouig to t v b u i viou tui, w ovi

    t togt vi to t o t ik btw g i viomt quity o

    g i ommuity mogi. W tog vi o t o mgitu

    tt i bot ttitiy igit miiy vt. W o vi o iom

    t tt uggt tt outio i giv otio i oit wit t migtio o i

    ouo /o immigtio o oo ouo.

    Ou ut oitt wit t yot gt om im Tibout mo

    m Tibout yoti tt ouo o vot wit ti t i o to o ubi

    goo. Ty o oitt wit t ig o t otti gtitio t oxogou imovmt i o miti (Sig t . 2004; Job Vigo 2002).

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