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Knowledge, Coordination, and Fiscal Federalism: An Organizational Perspective


  • Giampaolo GARZARELLI

    (University of Rome, La Sapienza)

  • Yasmina Reem LIMAM

    (The University of Connecticut)


This essay brings fiscal federalism theory into contact with the knowledge perspective to economic organization. The question addressed is: can a central government be justified in the context of fiscal federalism on grounds of economic organization? We point out that if one looks at the organizational problem of the vertical structure of the public sector from the standpoint of knowledge asymmetry the question of a central government in a federation becomes primarily a story of coordination of dispersed and specific knowledge.

Suggested Citation

  • Giampaolo GARZARELLI & Yasmina Reem LIMAM, 2003. "Knowledge, Coordination, and Fiscal Federalism: An Organizational Perspective," Public Economics 0304001, EconWPA.
  • Handle: RePEc:wpa:wuwppe:0304001
    Note: Type of Document - pdf; prepared on PC; pages: 17

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    References listed on IDEAS

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    Cited by:

    1. Wallace Oates, 2005. "Toward A Second-Generation Theory of Fiscal Federalism," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(4), pages 349-373, August.

    More about this item


    Federalism; economic organization; information asymmetry; knowledge asymmetry; coordination; EU.;

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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