the debate over which level of government, state/local or national, is more efficient in providing public goods and the limitations and implications of this debate.

There is an age-old tension between states/localities and the federal government, in regard to which level of government provides public goods more efficiently. Define what is meant by efficient in the context of allocating public goods. Explain the Tiebout hypothesis. What are the limitations of the hypothesis (i.e., factors that many complicate the efficient allocation of public goods)? Describe them. Should public goods be provided by state/local or the national government? Justify your position.