October 21, 2008
Interesting Tiebout/Public Finance Discussion

In response to the following question from Bryan Caplan:

If the Tiebout model were correct, how would you expect local governments to raise revenue? Carefully explain your answer.

Lots of good comments ensue. Be sure to scroll down to Bill Fischel's.

Posted by Joshua Hall at 06:58 AM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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