Presented at the National Tax Association Meetings in Philadelphia

for publication in the Proceedings Abstract: The Tiebout (1956) model assumes that there are many local governments and that they provide a mix of services that will attract prospective residents. Public schools are the paradigmatic public service. Many observers believe that public school districts are “accidents of geography. ” This essay shows that districts were intentionally established during the early history of the United States in order to maximize the value of the land owned by the United States government. §1. Introduction: Public Schools and Property Values This essay began as part of a book I have been writing about American school districts. It will be published by the University of Chicago Press and is provisionally titled Making the Grade: The Economic Evolution of American School Districts. It is projected to be available in late 2009. The book argues for a “demand side ” accounting of the development of schools an