Explain the Tiebout mechanism and how, in theory, it solves the three main problems underlying the efficient provision of public goods. Comment on the realism on the assumptions underlying these results. In recent years we have seen greater centralization of public education. What would the Tiebout model predict about efficiency and satisfaction with public goods provision? How might school choice mechanism such as charter schools and vouchers help.

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Tiebout mechanism holds that people could move to different municipalities which maximizes their per... View the full answer