Market Maximization of Individual Preferences and Metropolitan Municipal Service Responsibility

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Abstract
The assignment of functional responsibility in the American federal system is examined from the perspective of the municipal government. Tiebout's model of market maximization of individual preferences is contrasted with the more recent theories of Buchanan, Peterson, and Miller. The explanation that the historical origins of the city and the permeability of its borders structure the scope and level of its service responsibilities is tested. The findings have significant implications for the mode of municipal service provision and the potential for municipal governments to operate outside of the constraints imposed on them by their position in the American federal system.

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