Like most states, Massachusetts underwent a large shift in public school enrollment between the 1980s and 1990s, requiring a number of sizable fiscal and educational adjustments by individual school districts. Between 1980 and 1989, the number of students in kindergarten through grade 12 fell 21...

Economists and political scientists have long debated the nature of the process that determines government taxation and service levels in a democracy. During the 1980s, the role of referenda in determining city and town property taxes, and hence local spending, increased dramatically in...

Since the founding of the Republic, Americans have engaged in “endless debate” about the division of fiscal and regulatory responsibilities among levels of government. The controversy has often involved the concomitant question of the optimal role of government as a whole. The issue has been...

What behavior can be expected from state and local governments, given market-analogy theories of intergovernmental competition (competition enhances efficiency) and game-theoretic models (competition is destructive)? How does the real world depart from these paradigms? What empirical hypotheses...

There has been much talk in recent years of devolving powers and functions from the federal government to the states. Some observers even proclaim a “devolution revolution”, the result of which will be a more efficient and effective federal government and more robust and responsive states....

Because Medicaid is absorbing a large and growing share of government spending in every state, policymakers are under intense pressure to control the cost of this budget-breaking program. In search of clues concerning Medicaid cost containment, this article examines state data on per-recipient...

What conclusions, if any, can be drawn about the impact of state and local tax policy on economic development relative to other factors? What tax characteristics appear to be the most significant determinants? Are certain industries more sensitive to tax policy than others? Are business taxes...

The 50 states differ sharply in the scope of public services their state and local governments must deliver and in the costs of providing them. The governments of many states, through no fault of their own, must work relatively hard to provide the services needed by those who reside, work,...

In recent years, a growing number of scholars and policymakers have concluded that the federal government has become too large and powerful, intruding into affairs better handled by states and municipalities. Based on this premise, they have argued for a reduction in federal aid, the conversion...