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Theory of fiscal federalism: an analysis

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  • Prakash Chandra Jha

Abstract

The recent scholarship has made distinction between two generations of literature in fiscal federalism. The study has critically analysed the first generation theory and second generation theory of fiscal federalism. Though the latter approaches the problem of fiscal federalism from different perspectives, it does not challenge but complements the former. The paper argues that the second generation theory is an ongoing effort to build a theory in response to fiscal challenges facing a number of countries. In brief, it is aimed at explaining present-day institutional arrangements which can no longer be adequately explained by employing the first generation theory. Copyright Institute for Social and Economic Change 2015

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  • Prakash Chandra Jha, 2015. "Theory of fiscal federalism: an analysis," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 17(2), pages 241-259, October.
    • Handle: RePEc:spr:jsecdv:v:17:y:2015:i:2:p:241-259
    DOI: 10.1007/s40847-015-0009-0
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