Commemorating Richard Musgrave (1910–2007)

Atkinson, Anthony B.; Cnossen, Sijbren; Ladd, Helen F.; Mieszkowski, Peter; Pestieau, Pierre; Samuelson, Paul A.

doi:10.1628/001522108x334821

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Cited by 8 publications

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“…1 1 In an amenable essay, Atkinson et al (2008) commemorate Musgrave's early contributions to public finance. Many other authors have built on his ideas.…”

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confidence: 99%

Laboratory federalism with public funds sharing

Ania

Wagener

2021

Economic Inquiry

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Laboratory federalism hypothesizes that decentralization fosters innovation and learning in multijurisdictional systems, conducing to good policies. We discuss this using evolutionary stability, focusing in this paper on public funds sharing. In a model of rich-to-poor redistribution with labor mobility, where policy choices based on relative success lead to drastic welfare erosion, suitably designed sharing schemes can restore efficiency. Their necessary properties are the same as in a Nash equilibrium, showing they are a powerful corrective device for different modes of government interaction. Two drawbacks appear: reduced accuracy due to large multiplicity and a tendency to overly reward inefficiently high redistribution.

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“…1 1 In an amenable essay, Atkinson et al (2008) commemorate Musgrave's early contributions to public finance. Many other authors have built on his ideas.…”

mentioning

confidence: 99%