Old and New Theories of Fiscal Federalism, Organizational Design Problems, and Tiebout
AbstractThis work is a contribution to the Second Generation Theory (SGT) of fiscal federalism that studies fiscal federalism through contemporary economic and industrial organization theory. First, it establishes context by introducing the two classic motivations in support of federalism, namely, incentives and knowledge. Second, it succinctly discusses the incentive-based organizational approach of the SGT. Third, it shows that the Tiebout model already embeds an organizational approach, which instead rests on a knowledge motivation. The underlying theme is that the SGT should include both the incentive and knowledge motivations for fiscal decentralization.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0509009.
Length: 18 pages
Date of creation: 21 Sep 2005
Date of revision:
Note: Type of Document - pdf; pages: 18
Contact details of provider:
Web page: http://126.96.36.199
Economic organization; Incentives; Knowledge; Second Generation Theory of fiscal federalism.;
Find related papers by JEL classification:
- D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other
- H10 - Public Economics - - Structure and Scope of Government - - - General
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yingyi Qian & Barry R. Weingast, 1997.
"Federalism as a Commitment to Preserving Market Incentives,"
97042, Stanford University, Department of Economics.
- Yingyi Qian & Barry R. Weingast, 1997. "Federalism as a Commitment to Reserving Market Incentives," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 83-92, Fall.
- Seabright, Paul, 1994.
"Accountability and Decentralization in Government: An Incomplete Contracts Model,"
CEPR Discussion Papers
889, C.E.P.R. Discussion Papers.
- Seabright, Paul, 1996. "Accountability and decentralisation in government: An incomplete contracts model," European Economic Review, Elsevier, vol. 40(1), pages 61-89, January.
- Oliver Volckart, 2002. "No Utopia: Government Without Territorial Monopoly in Medieval Central Europe," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(2), pages 325-, June.
- Persson, Torsten & Tabellini, Guido, 1996. "Federal Fiscal Constitutions: Risk Sharing and Moral Hazard," Econometrica, Econometric Society, vol. 64(3), pages 623-46, May.
- Mariano Tommasi & Federico Weinschelbaum, 2007. "Centralization vs. Decentralization: A Principal-Agent Analysis," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(2), pages 369-389, 04.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Vigvári, András, 2009.
"Atipikus önkormányzati eladósodás Magyarországon
[Atypical local-government indebtedness in Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 709-730.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.