Decentralization, Competition and the Efficiency of Federalism
Arguments for the efficiency of federalism typically depend on a decentralization thesis and a competition thesis, both of which relate to mobility. In this essay, the author reviews and appraises these two lines of argument. The author suggests that the decentralization thesis is best seen not as an argument for the efficiency of federalism, but as an efficiency criterion against which models of federalism may be evaluated. By contrast, competition and mobility are aspects of the procedural mechanism of federalism that must be supplemented by explicit models of the political process. Copyright 1991 by The Economic Society of Australia.
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Volume (Year): 67 (1991)
Issue (Month): 198 (September)
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