Özet:

The discussion of what level of management and how much local public goods and services should be provided has become one of the important theoretical issues of local governments’ finance. The Tiebut model comes at the beginning of the hypotheses that explain that the local governments have an important role in providing efficiency in resource allocation. The Tiebout model is based on the presumption that consumer voters are moving and have full knowledge, suggesting that these individuals will transfer their consumption patterns in local public goods and services to communities that best reflect their consumption patterns and that this move will take place until each community reaches the optimal size. The model thus concludes that local services will provide effective resource allocation with a mechanism similar to the private market. The Tiebout model leads to the empirical measurement of many different topics, such as the impact of local financial variables on spatial preferences, individual public service preferences, domestic immigration motivation, housing prices and tax capitalization. The aim of this study is also to test the relationship between local financial variables and settlement preferences within the Tiebout model. Therefore, the study aims to analyze the effects of local financial, economic and social variables on the spatial preference (net migration rate) by taking advantage of panel data techniques for the 2008-2017 period at the 81 province level in Turkey. The analysis found that the net immigration rate, the local tax income per person, the local spending per person and the crime rate have a negative, positive relationship with the local GDP per person and a conclusion that confirmed the Tiebout model in terms of local tax income.

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