Knowledge, Coordination, and Fiscal Federalism: An Organizational Perspective

Giampaolo Garzarelli () and Yasmina Reem LIMAM
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Yasmina Reem LIMAM: The University of Connecticut

Public Economics from EconWPA

Abstract: This essay brings fiscal federalism theory into contact with the knowledge perspective to economic organization. The question addressed is: can a central government be justified in the context of fiscal federalism on grounds of economic organization? We point out that if one looks at the organizational problem of the vertical structure of the public sector from the standpoint of knowledge asymmetry the question of a central government in a federation becomes primarily a story of coordination of dispersed and specific knowledge.

Keywords: Federalism; economic organization; information asymmetry; knowledge asymmetry; coordination; EU. (search for similar items in EconPapers)
JEL-codes: D20 D23 E61 E62 H11 L22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe
Date: 2003-04-05
Note: Type of Document - pdf; prepared on PC; pages: 17

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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwppe:0304001

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