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.... Consistent with the Teibout 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. Contrary to previous studies, there is evidence of a role, albeit a mostly negative one, for the economic determinants of elderly migration. The possible importance of quality of life influences is also suggested by the findings."

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