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The Performance and Stability of Federalism: An Institutional Perspective

In: Handbook of New Institutional Economics

Author

Listed:
  • Barry R. Weingast

    (Stanford University)

Abstract

The literatures on the performance of federal systems divide around three central questions. The first concerns the economic performance of federalism; the second, the political performance; and the third, the sources of stability for federal arrangements. Economists typically focus on the first question, with an emphasis on the normative aspects, such as: How ought federalism to be designed? In answering this question, the economic theory of federalism provides a theory about the optimal organization of the state, addressing issues, such as what powers should be assigned to what levels of government; why should not the central government do everything? This literature has strong positive implications, for it also explains the economic implications of alternative divisions of powers among the various levels of government.

Suggested Citation

  • Barry R. Weingast, 2008. "The Performance and Stability of Federalism: An Institutional Perspective," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 7, pages 149-172, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-69305-5_8
    DOI: 10.1007/978-3-540-69305-5_8
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    Cited by:

    1. Thierry Madiès & Emmanuelle Taugourdeau, 2020. "Vertical transfers and tax competition: does trade integration matter?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 453-475, October.
    2. Thierry MADIÈS & Emmanuelle TAUGOURDEAU, 2019. "Decentralized leadership in a federation with competition for mobile firms: Does economic integration matter?," Working Papers 2019-24, Center for Research in Economics and Statistics.
    3. Thierry MADIÈS & Emmanuelle TAUGOURDEAU, 2019. "Decentralized leadership in a federation with competition for mobile firms: Does economic integration matter?," Working Papers 2019-24, Center for Research in Economics and Statistics.
    4. Fernández-González, Raquel & Puime-Guillén, Félix & Panait, Mirela, 2022. "Multilevel governance, PV solar energy, and entrepreneurship: the generation of green hydrogen as a fuel of renewable origin," Utilities Policy, Elsevier, vol. 79(C).
    5. Hagemann, Nina, 2012. "Institutional obstacles for the implementation of a River Basin Management concept in Western Ukraine," UFZ Discussion Papers 11/2012, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    6. Guccio, Calogero & Mazza, Isidoro & Mignosa, Anna & Rizzo, Ilde, 2018. "A round trip on decentralization in the tourism sector," Annals of Tourism Research, Elsevier, vol. 72(C), pages 140-155.

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