Economics · Public Economics
Tiebout sorting yields efficient local public-good provision under ideal assumptions. Which deviation is most likely to produce persistent inefficiency?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Financing via lump-sum taxes
- 2Inter-jurisdictional spillovers of benefits✓
- 3Many jurisdictions with diverse bundles
- 4Highly mobile households
Correct answer
Inter-jurisdictional spillovers of benefits
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