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The Assignment Problem in Federal Structures

In: The Economics of Public Services

Author

Listed:
  • Albert Breton

    (University of Toronto)

  • Anthony Scott

    (University of British Columbia)

Abstract

This paper contains a simple model of the assignment of functions among the jurisdictional levels that make up the public sector. The model rests on the notion that it is possible to classify the activities of individuals and governments who participate in the public sector and to impute costs—sometimes called transaction costs—to these activities. Following a description of the nature of these activities and costs, it is argued that an equilibrium assignment table, i.e. a cross-classification of functions on jurisdictional levels, can be determined. The paper then notes how misassignment problems can be dealt with by the use of interjurisdictional grants.

Suggested Citation

  • Albert Breton & Anthony Scott, 1977. "The Assignment Problem in Federal Structures," International Economic Association Series, in: Martin S. Feldstein & Robert P. Inman (ed.), The Economics of Public Services, chapter 14, pages 344-357, Palgrave Macmillan.
  • Handle: RePEc:pal:intecp:978-1-349-02917-4_14
    DOI: 10.1007/978-1-349-02917-4_14
    as

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