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  3. Journal of Economic Literature
  4. September 1999
  5. An Essay on Fiscal Federalism

Journal of Economic Literature

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

An Essay on Fiscal Federalism

  • Wallace E. Oates
Journal of Economic Literature
vol. 37, no. 3, September 1999
(pp. 1120–1149)
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Abstract

This paper is a selective survey of fiscal federalism. It begins with a brief review and some reflections on the traditional theory of fiscal federalism: the assignment of functions to levels of government, the welfare gains from fiscal decentralization, and the use of fiscal instruments. It then explores a series of important topics that are the subject of current research: laboratory federalism, interjurisdictional competition and environmental federalism, the political economy of fiscal federalism, market-preserving federalism, and fiscal decentralization in the developing and transitional economies.

Citation

Oates, Wallace, E. 1999. "An Essay on Fiscal Federalism." Journal of Economic Literature, 37 (3): 1120–1149. DOI: 10.1257/jel.37.3.1120

JEL Classification

  • H77 Intergovernmental Relations; Federalism; Secession