ECON-642 Public Economics: Discussion 8a

Description

Fiscal Federalism

PowerPoint for Class 15

Required Readings:

• Hindriks and Myles, Chapter 19, Sections 19.1 to 19.3, and 19.7 to 19.8.
• Oates, Wallace E. (2008). On the Evolution of Fiscal Federalism: Theory and Institutions. National Tax Journal, Vol. 61, No. 2, pp. 313-334.

Discussion Questions:

1. Which one of the arguments for centralization do you consider the most appealing?
2. Which one of the arguments for centralization do you consider the least appealing?
3. Would you agree that voting leads to excessive decentralization in industrialized countries?