Research Report Fiscal Federalism
From The Encyclopedia of Taxation and Tax Policy
Richard M. Bird
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Fiscal federalism is the analysis of the problems that give rise to, and arise from, the existence of more than one level of government within the same geographical area. As originally developed by Musgrave (1959) and Oates (1972), the "theory of fiscal federalism" concerns the division of public-sector functions and finances in a logical way among multiple layers of government (King 1984). This article describes the theories of fiscal federalism and the history of the literature.
Research Areas Economic mobility and inequality Taxes and budgets
Tags Fiscal policy State and local tax issues Federal budget and economy
Policy Centers Income and Benefits Policy Center