Fiscal determinants of migration to a fast-growing state: how the aged differ from the general population

Abstract

This paper utilizes 1980-89 data on Florida's metropolitan areas to test the hypothesis that fiscal variables have differing influences on the in-migration of the aged as compared to the general population. The model, which is based on the Tiebout hypothesis, tests the role of variables which represent public school-related finances and public assistance. With the application of a pooled cross-section time series approach, several versions of two equations are estimated using the general linear model. Consistent with the Tiebout theory, the general population is found to prefer high public school-related spending and low taxes. The elderly, in contrast, choose locations where school spending and taxes are low. Nonschool-related taxes positively impact the migration of both groups. There is evidence of a role for the economic determinants of elderly migration. -Author