Econ 212G final essay Example | Topics and Well Written Essays - 1250 words

Econ 212G final - Essay ExampleIndividuals effectively give their preferences by voting with their feet. (Stoddard 2009). In the exploit of moving into these communities, a population is sorted into optimum communities establish on the individuals preferences. Like any model, the Tiebout hypothesis puts forth a set of assumptions -- namely, access to complete information, scanty consumer mobility, many buyers and sellers, and consumer rationality. Tiebout also added the assumption that an optimal city size exists and that there are no spillovers of be and benefits to other communities.The hypothesis has been employ to provide insights in humans finance about the choices of communities for public goods (e.g., sanitation, education, public security) and how property values correlate with taxes and services that are provided. Zoning laws and regulations have also been explained by utilise the model. Above all, the hypothesis has had an impact on debates and decision making concer ning fiscal federalism and the proper roles of central, regional, and local governments. (ibid.).The fictional character of a bill passed in June 2009 by the New York Senate which was aimed to ease government consolidation, may be used to illustrate the last point (See Confessore, 2009 June). The law simplifies the complex array of laws specifying how government officials can choose to separate or merge towns, villages and the hundreds of special districts that provide water, sewage treatment and other services throughout the state.The legislative act does not propose consolidation as such but only creates a simple, uniform process by which voters and officials can decide on and execute consolidation, requiring only that 10 percent of registered voters to propose it. It give allow county governments to abolish local government units by a majority. On the pro side, the argument is that as well many layers of government have burdened residents with the highest taxes in the country, driving out