Question

1 ) The correspondence principle provides an understanding of how the services ( or public goods ) of government may be organized and delivered . Please describe this principle , and using examples , explain how it can be used in understanding which level of government provides a specific public good

Answer 1

The Correspondence Principle

The consumer of the goods should be funded by the government for proving the public goods and services. Other cities follow the public service created by one city. There should be a corresponding fund in the government budget from the tax which is collected. The government should be responsible to provide good responsibilities so that the functions can be delivered properly.

The level of government depends on the extent of economies of scale. The greater the extent of economies of scale the larger should be the political jurisdiction to allow for the realization of economies of scale associated with specific service under examination. In fiscal federalism the public goods are assigned to governmental functions to the different multi level system of government.

Pure public goods are said to be non rival in consumption. The consumption of one person does not reduce the good, for example watching television. But if this is inhibited by the consumption of other large number of consumers then it is said to be impure public good. For example, public parks, city streets etc.