When we started class, we discussed a public good in a levy example. Turns out in Tangipahoa Parish, we see this discussion in the real world. The local government wants to build a wall around the northwestern corner of Lake Pontchartrain to stop erosion.
In this example we see: limitations on the equilibrium quantity of the public good, different sources of funding, and lastly a sealed bidding process trying to limit the dead weight loss in awarding the 4.5 million dollar contract.
"Parish engineer Maurice Jordan said a 10,000-linear-foot wall can be constructed from an area just west of the mouth of the Tangipahoa River toward Pass Manchac, which empties into Lake Pontchartrain. The total distance from the river to the pass was about 18,000 linear feet but the federal Coastal Impact Protection Agency grant for the breakwater could not cover it, he said."
So we see the limitations on who pays what (Fed grant vs. no local spending), the equilibrium quantity at 10,000 (vs. the 18,000), and a sealed bidding process 'awarded' to a firm in Metairie, LA. One could argue that there is inefficiency because the marginal benefit really isn't $4.5 million, but overall it appears Tangipahoa has taken steps to maximize the utility/efficiency of their local system.
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