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Fiscal federalism and American exceptionalism: why is there no federal equalisation system in the United States?

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  • Béland, Daniel
  • Lecours, André

Abstract

This article addresses the absence of a federal equalisation programme in the United States, which is a significant aspect of “American exceptionalism”. Comparing the United States with Australia and Canada, we argue that three factors are relevant when accounting for this absence. On one hand, we turn to two societal factors to explain why there was never much political appetite for the creation of a stand-alone equalisation programme in the United States, namely the lack of a direct threat to the territorial integrity of the United States after 1865 and the comparative weakness of the idea of social citizenship in that country. On the other hand, our analysis shows that key institutional features of American political institutions, particularly strong bicameralism combined with the absence of formal party discipline, help illuminate why it would have been difficult to create an equalisation programme even if there had been some societal pressures to do so.

Suggested Citation

  • Béland, Daniel & Lecours, André, 2014. "Fiscal federalism and American exceptionalism: why is there no federal equalisation system in the United States?," Journal of Public Policy, Cambridge University Press, vol. 34(2), pages 303-329, August.
  • Handle: RePEc:cup:jnlpup:v:34:y:2014:i:02:p:303-329_00
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    Cited by:

    1. Mueller Sean & Vatter Adrian & Schmid Charlie, 2016. "Self-Interest or Solidarity?," Statistics, Politics and Policy, De Gruyter, vol. 7(1-2), pages 3-28, December.
    2. Søren Frank Etzerodt & Niels Jørgen Mau Pedersen, 2024. "Formula-based Grants as Pork Barrel Politics: Targetability and the Political-strategic Use of Grants," Munich Papers in Political Economy 34, Munich School of Politics and Public Policy and the School of Management at the Technical University of Munich.
    3. Tiffany H. Morrison & W. Neil Adger & Katrina Brown & Maria Carmen Lemos & Dave Huitema & Terry P. Hughes, 2017. "Mitigation and adaptation in polycentric systems: sources of power in the pursuit of collective goals," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 8(5), September.
    4. Giorgio Brosio, 2017. "Equalization transfers and convergence between federal and unitary systems: A contribution to their historical analysis," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2017(3), pages 21-66.
    5. Giorgio Brosio, 2017. "Equalization transfers and convergence between federal and unitary systems: a contribution to their historical analysis," Working papers 61, Società Italiana di Economia Pubblica.

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