Federalism

Robert Inman and Daniel L. Rubinfeld
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Robert Inman: University of Pennsylvania
Daniel L. Rubinfeld: University of California, Berkeley

No 1138, Berkeley Olin Program in Law & Economics, Working Paper Series from Berkeley Olin Program in Law & Economics

Abstract: Federalism is today a topic of intense intellectual debate in many countries throughout the world. In Europe, the former Soviet Union, South Africa and elsewhere the view that good government will involve a blending of local and central governmental decision-making is now well accepted. With a topic such as federalism that has been so widely debated from so many perspectives, it would be impossible to provide a comprehensive review of the literature. Rather, in this essay we provide a particular perspective, one that balances the twin goals of political participation and economic welfare. Which level of government is best suited to make public policies, given that we want those policies to be democratically decided, respectful of personal rights, and economically efficient? A considered answer -- whether for Europe's new Economic Union, the new South African Constitution, or to the regulation of anticompetitive firm behavior within the United States or the Economic Union -- requires a careful balancing of the benefits and costs of decentralized and centralized political structures. (forthcoming, Encyclopedia of Law and Economics, ed. B. Bouckaert and G. De Geest, 1998) Contact the Law and Economics Program at Boalt Hall School of Law, UC Berkeley, Berkeley, CA 94720 for a copy of this paper.

Date: 1997-06-30
Note: oai:cdlib1:blewp-1138

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