Several years ago, some citizens of the town of Manchester, Vermont, decided to launch a school fund-

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Several years ago, some citizens of the town of Manchester, Vermont, decided to launch a school fund- raising campaign. A private group of citizens decided how much every household and business should contribute, and there was a good deal of social pressure to pay the full amount. One flier urged, “We cannot sit back and wait for our neighbors to carry the load” [Tomsho, 2001, p. A1]. Use the experimental results on free riding discussed in this chapter to predict the outcome of this campaign. 9. In
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Public Finance

ISBN: 978-0078021688

10th edition

Authors: Harvey Rosen, Ted Gayer

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