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Decentralization, Competition and the Efficiency of Federalism

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  • ALAN P. HAMLIN

Abstract

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 I shall review and appraise these two lines of argument I shall suggest 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 which must be supplemented by explicit models of the political process.

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  • Alan P. Hamlin, 1991. "Decentralization, Competition and the Efficiency of Federalism," The Economic Record, The Economic Society of Australia, vol. 67(3), pages 193-204, September.
    • Handle: RePEc:bla:ecorec:v:67:y:1991:i:3:p:193-204
    DOI: 10.1111/j.1475-4932.1991.tb02546.x
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    1. Buchanan, James M. & Goetz, Charles J., 1972. "Efficiency limits of fiscal mobility: An assessment of the tiebout model," Journal of Public Economics, Elsevier, vol. 1(1), pages 25-43, April.
    2. A. Hamlin, 1984. "Constitutional control of processes and their outcomes," Public Choice, Springer, vol. 42(2), pages 133-145, January.
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    4. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922, November.
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    6. Wallace E. Oates, 1968. "The Theory of Public Finance in a Federal System," Canadian Journal of Economics, Canadian Economics Association, vol. 1(1), pages 37-54, February.
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    8. Alan P. Hamlin, 1985. "Federalism, Horizontal Equity, and the Optimal Grant," Public Finance Review, , vol. 13(2), pages 115-131, April.
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    Cited by:

    1. Chen, Shaoling & Gao, Qing & Peng, Qing & Yang, Haisheng, 2021. "Government-decentralized power: Measurement and effects," Emerging Markets Review, Elsevier, vol. 48(C).
    2. Geoffrey Brennan & Alan Hamlin, 1994. "A Revisionist View of the Separation of Powers," Journal of Theoretical Politics, , vol. 6(3), pages 345-368, July.
    3. Seabright, Paul, 1996. "Accountability and decentralisation in government: An incomplete contracts model," European Economic Review, Elsevier, vol. 40(1), pages 61-89, January.
    4. Fabella, R.V., 2005. "A Nozick-Buchanan contractarian governance as solution to some Invisible Hand failures," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 284-295, May.
    5. Sandambi, Nerhum, 2025. "Manifest of Decentralization: Proposal For Federalism Model For Angola," SocArXiv dcp9w_v1, Center for Open Science.
    6. Graham Brownlow, 2017. "Practice running ahead of theory? Political economy and the economic lessons of UK devolution," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 559-573.

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