Fiskalischer Föderalismus und Staatstätigkeit

Christoph Schaltegger

Zeitschrift für Wirtschaftspolitik, 2003, vol. 52, issue 1, 84-110

Abstract: What is the impact of federalism on the size of government? On the one hand, various externalities and unexploited economies of scale caused by federalist institutions favour a larger size of government. On the other hand, some authors argue that federalism represents an institutional barrier for policy makers eventually restricting their policy discretion to deviate from voter preferences. Consequently, the net effect of federalism is open from a theoretical point of view. This paper evaluates the different aspects of federalism empirically for Swiss cantons with a panel of annual data from 1980 to 1998. The results indicate that federalism in Switzerland rather favours a smaller size of government.

Date: 2003
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DOI: 10.1515/zfwp-2003-0106

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