B. Next, consider the opposite type of government, that is, one that is benevolent and raises taxes only to the extent to which it can find worthwhile public goods to finance. Suppose again that there are N such governments that use a local property tax to fund local public goods, and suppose that all public benefits from such public goods are contained within each government’s jurisdictional boundaries.

a. Begin, as in A(a), by assuming that there is mobility of consumers across jurisdictions and thus no government faces any competitive pressures. Will they produce the efficient level of local public goods?