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Summer 2024
ISSN 0890-913X
Volume 39, Number 2

Foreign-Born Residents and the Optimal Provision of Public Goods: An Application of Lindahl Pricing and Tiebout Sorting

Brian K. Strow, Palm Beach Atlantic University
Claudia W. Strow, Palm Beach Atlantic University
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Strow,BrianK.,andClaudiaW.Strow.2024.Foreign-BornResidentsandtheOptimalProvisionofPublicGoods:AnApplicationofLindahlPricingandTieboutSorting.”JournalofPrivateEnterprise,39(2):3156.Foreign-BornResidentsandtheOptimalProvisionofPublicGoods:AnApplicationofLindahlPricingandTieboutSortingBrianK.StrowPalmBeachAtlanticUniversityUnitedStatesofAmericaClaudiaW.StrowPalmBeachAtlanticUniversityUnitedStatesofAmericaAbstractThispaperexaminesimmigrationasitrelatestotwowell-knownpublicfinancemodelsofoptimalpublicgoodsprovision:LindahlpricingandtheTieboutmodel.Asthemajorfunctionoflocalgovernmentsistheprovisionofpublicgoods,thispapersuggeststhatlocal-levelvoterparticipationbyimmigrantscouldimprovepreferencerevelationinLindahlsmodelandreinforceTieboutsortingbetweenjurisdictions.Furthermore,theincreaseduseofvouchersprovidedtostudents,nativeandforeignbornalike,increasesdirectpreferencerevelationconcerningthespecificpublicgoodofeducation.Byusinglong-standingpublicfinancemodels,thispapershowsthatpolicyideasoftheLeft,increasedvoice(accesstothevotingbooth),andtheRight,increasedfreedomofexit(accesstoschoolvouchers),havethetheoreticalbenefitofincreasingpublicgoodoptimization.JELCodes:H2,H4,J6Keywords:immigration,schoolvouchers,voting,Lindahl,TieboutI.IntroductionOnMay11,2023,arestrictiveCOVID-eraUSimmigrationpolicy,Title42,expired.Title42allowedborderagentstoquicklyexpelmanyasylumseekersbacktoMexicoortheirhomecountries.Duringthethreeyearsthepolicywasinplace,2.7millionmigrantexpulsionstookplace,whileanother2.8millionmigrantswereallowedintotheUS(Hesson2023).WiththeexpirationofTitle42,analystsandpolicymakerspredictedthattherewouldbeanincreaseinthenumberofthoseactivelyseekingentryintotheUS(DejarnisandBarnhart2023).
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