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In Response
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In Response to Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses. By: Edward M. Gramlich and Daniel L. Rubinfield In this paper the authors test three hypothesis. The first is whether parameter estimates derived from analyses of local government budgetary aggregates accurately reflect the demands that would be expressed by individual citizens. The second is to test the Tiebout hypothesis that citizens with similar tastes for public goods will live together in jurisdictions that supply these goods with economic efficiency. The third is to compare actual public goods to desired public goods.
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