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According to the Tiebout model, does Location A or Location B have the net fiscal benefit? Why? The RT (residential tax rate) for Location A

According to the Tiebout model, does Location A or Location B have the net fiscal benefit? Why?

The RT (residential tax rate) for Location A is 0.02per dollar of assessed value of the property.

The RT (residential tax rate) for Location B is 0.01 per dollar of assessed value of the property.

Location B boasts 5 major public parks, many neighbourhood parks, and a major conservation area. Location A advertises 3 major public parks, and many neighbourhood parks. Together, Location A & B offers over 123 km of community trails.

Location B does not have a major hospital. Location B houses 3 major universities. Location A boasts 3 major hospitals. Location A does not have a major university.

For the purposes of any objective comparison of public services, we will assume that garbage collection, snow removal, etc. is provided at an equal quality and rate throughout the region.

Location B has one 18-hole public golf course.

Location Ahas 3 full (18 hole) public golf course

Location B has 0 homeless shelter services.

Location B has had 50 arrests .

Location A has 4 homeless shelter services.

Location A has had 2000 arrests

The average household income in Location B is $100,000.

The average household income in Location A is $80,000.

The average home in Location B as of April 2017 was $600,000.

The average home in Location A as of April 2017 was $500,000.

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