Consider the previous exercise with the situation before


Consider the previous exercise with the situation before migration, and suppose that the government requires the rich residents to contribute 3/4 of the cost of local public good provision where they live and the poor residents to contribute 1/4 of the cost.

a. How much public good will be provided under majority voting in each district?

b. Is there any resident who wants to move (and, if so, who and where)? Why or why not?

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Econometrics: Consider the previous exercise with the situation before
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