2 How should the cost of each of the following services be distributed? What role can fees and charges play in each instance? What part should be played by general tax revenues?

Justify your answers in both effi ciency and equity terms.

• City streets

• Sewer service

• Solid waste disposal

• Fire protection

• National defense

• City summer recreation for children

• State highways

• Public libraries

• Local bus service

• Public parking

• Higher education

• Street lights