The Korea Local Administration Review

This article tried to test whether local governments’ fiscal structure and localtax burden have an effect on inter-governmental mobility of over sixty agedgroup from the Tiebout’s point of view. To articulate this subject, this articleanalyzed 230 local governments with multiple panel regression from2005-2010. The testing results are that fiscal structure and tax burden have asimilar effect with Tiebout-hypothesis on aged persons’ out-migration in Guand City local governments. On the other hand, the fiscal structure and localtax burden also have a positive effect on aged persons’ in-migration and thisresult is more salience in metropolitan area. We can estimate that the mainreason of this phenomenon comes from different mobility incentive andperception gap between in-migrants and out-migrants about tax burden. Incase of out-migrants, tax burden is considered as increasing housing expensesbut on the other hand, tax burden is considered as the results of capitalizationor increasing property value to in-migrants.
□ Keywords: Tiebout-hypothesis, fiscal structure, elderly-migration,capitalization. panel regression analysis