We re-evaluate two forms of fiscal illusion in local public finance: debt illusion and renter illusion. The Ricardian Equivalence Theorem for local governments suggests the form of finance of a public program (tax or debt finance) has no effects on substantive outcomes. For the local case, this...

This paper explores the roles of different levels of government in assisting the poor. Using a model with utility interdependence, the paper presents some theoretical results on how levels of poor relief vary with the extent of mobility of the poor under both centralized and decentralized...

Economic theorists and finance practitioners alike turn to the seminal work of Wallace E. Oates for a systematic statement of the economic principles of fiscal federalism. In this book, Professor Oates provides an overview of fiscal federalism and analyses specific problems in a selection of his...

This title presents an authoritative collection of the most significant papers on fiscal federalism and local finance. In addition to some classic papers, it offers clear and insightful presentations of conventional wisdom in the field as well as recent papers which illuminate important issues...

This reprinted edition of a classic and truly seminal book, written by one of the leading thinkers in the field, represents the first comprehensive treatment of the economic theory of multi-level government. It explores the specific economic roles of the various levels of government, the...

Discusses fiscal decentralization and economic development in developed and developing countries. Explores historical trends in fiscal centralization and puts them in context of the developing countries.

In this paper, I want to review this evolution of the theory of fiscal federalism and offer some thoughts on the implications of these new views for the structure and functioning of federal fiscal systems. This will provide an opportunity to draw on the comparative experience of certain...

Analyzes the impact of property tax reform in Pittsburgh (1979-1980), which dramatically increased the tax rate applied to land (but not structures). Explores the impact of this tax reform on the economic development of the city.

Uses aggregate time-series data to explore state and local budgetary responses to cuts in federal grant programs. Finds that the "flypaper effect" is two-way (spending falls in response to cuts by about the same magnitude as it rises in response to grant increases).