If the Baumol hypothesis is correct concerning local government finances, and if the price elasticity of demand for local services is in elastic
If the Baumol hypothesis is correct concerning local government finances, and if the price elasticity of demand for local services is in elastic, then we are in trouble-eventually, spending for education, police and fire protection and sanitation will require half of our incomes" Evaluate this concern. What changes could occur to prevent this from happening?
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