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 efficiently provided locally? Which is more efficiently 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 residents within a community as the costs of moving fall?
(b) The researchers found that while mobility costs have steadily fallen, the differences 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.