How might the majority voting model be used to explain the growth of government expenditures? a. Should

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How might the majority voting model be used to explain the growth of government expenditures?
a. Should changes in median or average income better explain increases in the demand for government services?

b. What should be the effect of an increase in the costs of producing public good caused by government in efficiency? Would it make a difference if the increase in cost is a result of government paying above-market wages (wages higher than those paid comparable workers in the private sector)? (Does your answer to the last question depend on whether the median voter is a government employee?)

c. Why might you expect that if income per capita remains the same but the number of individuals in the economy increases, the demand for public goods would increase?

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Economics Of The Public Sector

ISBN: 9780393925227

4th Edition

Authors: Joseph E. Stiglitz, Jay K. Rosengard

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