A Pure Theory of Local Expenditures. A Pure Theory of Local Expenditures. Please read the article “A Pure Theory of Local Expenditures” to answer these questions:
1. What is a “collective consumption” good?
2. What does Tiebout identify as the key challenge to the optimal provision of these collective consumption goods?
3. What does Tiebout identify as the key difference between central and local government provisions of public goods and how does this lead to the ability of local governments to provide the optimal level of a public good?
4. What do you believe are the key challenges that arise from “voting with one’s feet”?
The PDF named “Week 8” is the PPT of the class material.
The PDF named “Tiebout 1956 APureTheoryofLocalExpediture ” is the reading you should read and use.
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Please answer each question respectively and separately. for example, Q1. **%$#@%
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A Pure Theory of Local Expenditures