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An Essay on Fiscal Federalism

Wallace Oates

Journal of Economic Literature, 1999, vol. 37, issue 3, 1120-1149

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.

JEL-codes: H77 (search for similar items in EconPapers)
Date: 1999
Note: DOI: 10.1257/jel.37.3.1120
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