This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. Journal of Economic Perspectives
  4. Fall 1997
  5. Devolution, Grants, and Fiscal Competition

Devolution, Grants, and Fiscal Competition

  • Richard A. Musgrave
Journal of Economic Perspectives
vol. 11, no. 4, Fall 1997
(pp. 65-72)
Download Full Text PDF
(Complimentary)

Abstract

Following half a century of fiscal activism and federal leadership, the call now is for downsizing the federal budget and a devolution of fiscal responsibilities to states and localities. The call for "federalism," meant to secure a stronger center in James Madison's time, now seeks to decentralize. This paper outlines the main features of fiscal federalism as I see them, sketching a vision which differs in major respects from that offered by the lead paper in this symposium. First I highlight the role of distribution, which I see as a central function. Then, I focus attention on grants-in-aid and their role in the federal system. Finally I consider competition, cooperation, and coordination between jurisdictions.

Citation

Musgrave, Richard A. 1997. "Devolution, Grants, and Fiscal Competition." Journal of Economic Perspectives, 11 (4): 65-72. DOI: 10.1257/jep.11.4.65

JEL Classification

  • H11 Structure, Scope, and Performance of Government
  • H77 Intergovernmental Relations; Federalism; Secession
There are no comments for this article.
Login to Comment