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What will be the equilibrium distribution of residents

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Reference no: EM131209349

Consider the previous exercise and now suppose both types of residents can migrate to the other district.

a. Which residents will move?

b. What will be the equilibrium distribution of residents?

c. Are there still residents unhappy with the amount of local public good?

d. Is the provision of public good ancient (according to the Samuelson rule)? Explain why or why not.

Reference no: EM131209349

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