Changing Relationships in the American Federal System

This analysis: 1. examines the economic justification for allocating government functions (service delivery, control, and revenue raising) in a three-tiered federal system, 2. examines the American federal system's response to increasing economic and social complexities, and 3. examines the pos...

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Bibliographic Details
Published in:Growth and change 1981-10, Vol.12 (4), p.33-42
Main Authors: QUINDRY, KENNETH E., SCHOENING, NILES C.
Format: Article
Language:English
Subjects:
Economic justification
Economic theory
Federal
Government
Public policy
Transfer payments
Welfare economics
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Summary:This analysis: 1. examines the economic justification for allocating government functions (service delivery, control, and revenue raising) in a three-tiered federal system, 2. examines the American federal system's response to increasing economic and social complexities, and 3. examines the possible evolution in centralization-decentralization tendencies. The federal system has no consistent model by which to allocate the respective responsibilities for public functions, and centralization-decentralization tendencies have ebbed and flowed haphazardly over the years, influenced by competing interests. The most important issue is not determining which level of government should administer a function, but which level should set the standards of services and how the financing should be allocated. Three rules for efficient allocation include: 1. each government level should finance its share of responsibility in each of its functions, 2. each level should set standards and establish controls in order to protect its interests and to insure those interests are upheld, and 3. administration should exist at a level at which the job can be most efficiently done with shared control and financing.
ISSN:0017-4815
1468-2257
DOI:10.1111/j.1468-2257.1981.tb00689.x