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Consider the rival and excludable properties of public goods


1. Consider the rival and excludable properties of public goods, explain the following.

(a) To what degree is radio broadcasting a public good?

(b) To what degree is a highway a public good?

2. Think about two public goods: public schools and food assistance for needy families.

Consider the implications of the Tiebout model. Which of the goods is more eï¬ciently

provided locally? Which is more eï¬ciently provided centrally? Explain.

3. Some researchers evaluated a century of historical evidence to investigate the impact

of changes in moving costs within the Tiebout model.

(a) What does the Tiebout model predict should happen to the similarity of resi-

dents within a community as the costs of moving fall?

(b) The researchers found that while mobility costs have steadily fallen, the dif-

ferences in public good provision across communities have fallen as well. Does

Tiebout sorting explain this homogenization of public good provision, or must

other factors have played a larger role? Explain.

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