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  3. Journal of Economic Perspectives
  4. Fall 1997
  5. Devolution, Grants, and Fiscal Competition

Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

Devolution, Grants, and Fiscal Competition

  • Richard A. Musgrave
Journal of Economic Perspectives
vol. 11, no. 4, Fall 1997
(pp. 65–72)
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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.

Citation

Musgrave, Richard A. 1997. "Devolution, Grants, and Fiscal Competition." Journal of Economic Perspectives, 11 (4): 65–72. DOI: 10.1257/jep.11.4.65

JEL Classification

  • H11 Structure, Scope, and Performance of Government
  • H77 Intergovernmental Relations; Federalism; Secession
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