Abstract

Chapter 26 considers how to assign the various allocational and distributional government functions to the different government levels within the federalist hierarchy to avoid potential incompatibilities and destructive competition among the governments. It highlights George Stigler’s prescription for assigning allocational functions to the lowest level of government, consistent with efficiency, and argues that all levels of the government have to participate in resolving the issue of the optimal income distribution to maintain an unambiguous meaning of social welfare maximization under federalism.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.