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Knowledge, Coordination, and Fiscal Federalism: An Organizational Perspective

Listed author(s):
  • 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.

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Paper provided by EconWPA in its series Public Economics with number 0304001.

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Length: 17 pages
Date of creation: 05 Apr 2003
Handle: RePEc:wpa:wuwppe:0304001
Note: Type of Document - pdf; prepared on PC; pages: 17
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