Аннотация:In this paper I will develop a model of the behaviour of economic agents in a system of local governments . The model is very much in the spirit of the wellknown Tiebout Hypothesis (1956) and many of Tiebout's original assumptions will be retained . Much recent research in urban public finance has been concerned with the nature of the goods provided by local governments (in particular with various aspects of the 'publicness' of these goods), and the degree to which `voting-with-feet' mechanism can distribute these goods Pareto optimally' This paper is concerned not with the nature of the goods but with the nature of the mechanism itself, and I will discuss only peripherally such problems as economies of scale and spillovers . Toward the conclusion of the paper I will discuss in more detail
