Local expenditures and receipts for all local governmental
Elucidate the Local expenditures and receipts for all local governmental units in 1996?
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The Local expenditures and receipts for all local governmental units in 1996 are:
1. Revenue is primarily from property taxes.
2. Spending is primarily on education.
3. Gap between local tax revenues and spending is largely filled by grants from state and Federal government. (This system of intergovernmental transfers is called fiscal federalism.)
What divergences arise between equilibrium and an efficient output spillover benefits are present? How might government correct this divergence?
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