Discuss the effect of such a matching program on communities


Problem

Many matching grant programs specify that the federal government matches on a dollar-for-dollar basis local expenditures up to some particular maximum. Draw the budget constraint between private goods and local public goods facing a community of identical individuals. Discuss the effect of such a matching program on communities that do not go to the maximum. Discuss the effect on communities that go beyond the maximum.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Discuss the effect of such a matching program on communities
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