The article “A Pure Theory of Local Expenditures” from Charles M. Tiebout provides a solution for the Free-rider problem of local public goods and was first published in the Journal of Political Economy in 1956. The Tiebout Model is still an important contribution to the analysis of local government activities and influenced many fields of the political economy like tax competition, fiscal decentralization and club theory. Between 1956 and 1969 the article received little attention from other economists. Beginning with an empirical test of the Tiebout hypotheses of Wallace E. Oates (1969) the scholarly interest in the Tiebout model increases up to his currently status as an important model in the field of public economics. This master thesis is based on a literature research to the Tiebout hypotheses and entails a critical evaluation of the model from contemporary economics like Paul Samuelson, Richard Musgrave, James Buchanan and others. It provides details about the background of his article and offers a biography about Charles M. Tiebout. Moreover, several general economic conditions that influence the acceptance of the Tiebout model are considered in the analysis. It can be shown, that for the considered period of time the Tiebout model was widely dismissed. Also low importance of local governments can be seen as an important point regarding the modest influence of the model between 1956 and 1969. After that, decentralised solutions to economic problems became more popular and economists start to work on the Tiebout model. Besides the solution to the problem of the provision of local public goods, the model is now used to answer concourse economic problems.