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Journal of Economic Literature: Vol. 37 No. 3 (September 1999)

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An Essay on Fiscal Federalism

Article Citation

Oates, Wallace E. 1999. "An Essay on Fiscal Federalism." Journal of Economic Literature, 37(3): 1120-1149.

DOI: 10.1257/jel.37.3.1120

Abstract

This paper is a selective survey of fiscal federalism. It begins with a brief review and some reflections on the traditional theory of fiscal federalism: the assignment of functions to levels of government, the welfare gains from fiscal decentralization, and the use of fiscal instruments. It then explores a series of important topics that are the subject of current research: laboratory federalism, interjurisdictional competition and environmental federalism, the political economy of fiscal federalism, market-preserving federalism, and fiscal decentralization in the developing and transitional economies.

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Authors

Oates, Wallace E. (U MD and Resources for the Future)

JEL Classifications

H77: Intergovernmental Relations; Federalism; Secession


Journal of Economic Literature


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