1. The Tiebout model explains under-provision of public goods as due to the fact that it is hard to "shop" for public goods the way consumers shop for ice cream or other public goods. When the public goods are provided by the local government, there is more of a chance for consumers to "shop" with their feet, by moving to the place that has the level of public good they want. Competition can arise between nearby cities and towns. The Tiebout model predicts that under some conditions, you can get fully efficient public good provision.

Based on the assumptions in the Tiebout model, which of the following settings is likely to lead to the to lead to the predictions of the model holding (efficient provision of local public goods).

a. Is it more likely to apply to goods like garbage collection or goods like school spending on education (where no one can go to any school but the one in their town and you should assume there are no spillovers from schooling for this problem) and why?

b. Is it more likely to apply to goods like police forces or goods like garbage collection and why?

c. Is it more likely to apply in rural areas where the distance to nearest other town is very high or in suburbs of large cities and why?