28 May public finance free responses
Econ 4310
State and Local Finance
Homework #4 (20 points)
Due: March 9 at 6pm
Submitted to Carmen
Notes:
1. Any submitted documents that cannot be opened will not be graded and receive a zero.
2. Do your own work. You may work together, but you answers should not be the same. Answers considered to be the same will be graded as a zero.
3. Start each new question on a separate page.
1. Consider the following argument: The streets have been paid for by and belong to the people. Therefore, parking meters should be abolished. Analyze that position and prescription. Use a diagram to support your answer.
When writing your answer consider:
a. If there were no parking fees, how would the available parking spaces be allocated?
b. Which allocation system is better?
c. Who benefits from each type of allocation system?
d. After abolishing parking meters, would people perceive that there is more or less of a “parking problem”?
e. If parking fees or meters are used, should the cost of parking vary or be the same for everyone all the time?
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