As recent events illustrate, state finances are pro-cyclical: during recessions, state revenues crash, worsening the effects of economic downturns. This problem is well-known, yet persistent. We argue here that, in light of predictable federalism and political economy dynamics, states will be...

The traditional fiscal federalism theory shows that the devolution of functions for the supply of local public goods may increase welfare. However, most services offered at local level are impure local public goods with spillovers. These goods have specific characteristics that may prevent...

During recessions, the newspapers are filled with stories of the pain caused by state and local budget cuts: slashed mental health funding, reductions in school meals, further delays in long-overdue infrastructure maintenance and replacement, and new taxes. During booms, they are filled stories...

Just three months after the Senate immigration bill met its well-deserved end, amnesty advocates in the U.S. Congress resumed their efforts. The Development, Relief, and Education for Alien Minors (DREAM) Act is a nightmare. It is a massive amnesty that extends - conditional - lawful permanent...

This symposium article recounts recent litigation by several states over a provision of the Medicare Modernization Act Part D prescription drug benefit: The clawback, which requires states to pay the a potentially substantial portion of new federal program. I then examine the unique federalism...

In this study, I examine the cost inefficiency and production inefficiency of municipal insurers operating under the Japanese National Health Insurance system. I employ insurer-level panel data for 2005 and 2010 and adopt stochastic frontier cost and production models to overcome analytical...

This is a companion piece to an article that carefully analyzes tuition tax credit scholarship programs now popular around the country. This article offers a model statute for states considering or improving such programs that addresses concerns raised in my previous article. The companion...

The recovery from the recent recession has been very sluggish, and the nation’s governors have struggled with the resulting budget deficits, unemployment, and other economic problems in their states. Many reform-minded governors elected in 2010 have championed tax reforms and spending...

Recent legislation passed in March 2012 in the State of Utah – the “Transfer of Public Lands Act and Related Study,” (“TPLA”) also commonly referred to House Bill 148 (“H.B. 148”) – has demanded that the federal government, by December 31, 2014, “extinguish title” to certain...

The economic growth and the pace of change in Vietnam over the last decade have been impressive. A number of the reform achievements were centred on reforms at central level, e.g. legal and regulatory frameworks, national policy frameworks etc. The number of provinces in Vietnam has grown 60%...