Devolution, Grants, and Fiscal Competition

Richard A. Musgrave

Journal of Economic Perspectives, 1997, vol. 11, issue 4, 65-72

Abstract: Following 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.

JEL-codes: H11 H77 (search for similar items in EconPapers)
Date: 1997
Note: DOI: 10.1257/jep.11.4.65
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Citations: View citations in EconPapers (23)

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