Assignment:
Please read this handout and summarize the main ideas. Please submit your summary as file attachment. This handout must be read as part of readings (Gruber). Alongside your summary, please answer the following two questions:
1. Some people have suggested that political voting and voting with one's feet simultaneously apply in determining the amounts of local public services to provide. Discuss how this might happen. How might the limitations of the assumptions in the Tiebout theory contribute to a role for voting?
2. Think about two public goods - public schools and food assistance for needy families. Consider the implications of Tiebout model. Which of the goods is more efficiently provided locally. Which is more efficiently provided centrally? Explain.
Readings:
Demand for State and Local Goods and Services
By Edward M. Gramlich