Devolution, Grants, and Fiscal Competition
- (pp. 65-72)
AbstractFollowing 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.
Citation1997. "Devolution, Grants, and Fiscal Competition." Journal of Economic Perspectives, 11(4): 65-72. DOI: 10.1257/jep.11.4.65
- H11 Structure, Scope, and Performance of Government
- H77 Intergovernmental Relations; Federalism; Secession