Chap020 - Chapter 20 Public Finance in a Federal System...

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Chapter 20 – Public Finance in a Federal System Chapter 20 – Public Finance in a Federal System 1. a. To the extent that autos tend to be used within a given jurisdiction only, it would make sense for states or localities to control pollution regulations. To the extent that a given car is driven in many states, or that pollution created in one jurisdiction affects residents in another, it would make sense for the federal government to be in charge. b. To the extent that the negative externalities of a landfill affect only people who live nearby them, then local or state regulation is appropriate. c. Provision of weather satellites would make most sense for the federal government. d. Public refuse collection seems a natural function for local government. e. In the case of airport security, inter-jurisdictional externalities are present. If one airport in one community does not have adequate security, it affects the security of individuals at airports in other jurisdictions.
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