Abstract
Using recent census data, this research examines municipal incorporations. The research is guided by the Tiebout model and a reorganization framework: it posits that wider income heterogeneity among county areas raises the probability of incorporation for higher-income communities, and incentives for incorporation include revenue and growth control. Empirically, change in unincorporated places is examined to determine how their income heterogeneity influences initiatives for incorporation, through subsamples of revenue and growth control. Main findings are that income heterogeneity raised the probability of incorporation, particularly where municipal per-capita revenue is greater, land use regulation is nonrestrictive, and population growth is rising.
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