Many matching grant programs specify that the federal government matches, on a dollar-for-dollar basis, local expenditures up

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Many matching grant programs specify that the federal government matches, on a dollar-for-dollar basis, local expenditures up to some particular maximum. Draw the budget constraint between private goods and local public goods facing a community of identical individuals. Discuss the effect of such a matching program on communities that do not go to the maximum. Discuss the eff ect on communities that go beyond the maximum.

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Economics Of The Public Sector

ISBN: 9780393925227

4th Edition

Authors: Joseph E. Stiglitz, Jay K. Rosengard

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