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Economics Of Federalism

Economics Of Federalism

Bruce H. Kobayashi , Larry E. Ribstein

Edited by Bruce H. Kobayashi, Professor of Law, School of Law, George Mason University, US and the late Larry E. Ribstein, formerly Mildred Van Voorhis Jones Chair in Law, College of Law, University of Illinois, US

Two volume set 2007 1,320 pp Hardback 978 1 84542 527 2

Hardback £369.00 on-line price £332.10


Series: Economic Approaches to Law series

‘The two Kobayashi–Ribstein volumes on economics of federalism contain a nicely structured collection of key papers that provide both needed background and illuminating applications of economic analysis to the basic legal issues that arise in a setting of multi-level government.’
– Wallace E. Oates, University of Maryland, College Park, US

This insightful and authoritative two-volume set examines the major issues and theories concerning federal political systems. The book covers the two main branches in the economics literature.

29 articles, dating from 1956 to 2005 Contributors include: J. Buchanan, R. Epstein, W. Oates, W. Riker, J. Rodden, R. Romano, D. Rubinfeld, C. Tiebout, G. Tullock, B. Weingast

Further information

This insightful and authoritative two-volume set examines the major issues and theories concerning federal political systems. The book covers the two main branches in the economics literature.

The first branch, on competitive federalism focuses on the horizontal structure of federalism, as well as examining the jurisdictional competition between state and governments for mobile individuals and resources. The second branch focuses on fiscal federalism and examines the vertical structure of federalism, or the division of public services and taxing power between central and state governments.

This comprehensive set also examines applications of the economic analysis of federalism in specific areas of the law, including: corporate law; antitrust law; environmental law; choice of law rules; contractual choice of law and public choice theory. It will be of interest to economic and legal scholars alike.

Full table of contents


Volume I


Introduction Bruce H. Kobayashi and Larry E. Ribstein

A Multiple Jurisdictions Are a Solution to the Public Good Problem
1. Charles M. Tiebout (1956), ‘A Pure Theory of Local Expenditures’

B Exit and Federalism
2. Richard A. Epstein (1992), ‘Exit Rights Under Federalism’

C Optimal Jurisdiction Size
3. Gordon Tullock (1969), ‘Federalism: Problems of Scale’

D Twin Dilemmas of Federalism: Free Riding, Spillovers, and Agency Costs
4. William H. Riker (1964), ‘The Origin and Purposes of Federalism’ and ‘The Maintenance of Federalism: The Administrative Theory’

E Conditions for Federalism
5. Edmund W. Kitch (1980), ‘Regulation and the American Common Market’

F Public Choice and Federalism
6. Jonathan R. Macey (1990), ‘Federal Deference to Local Regulators and the Economic Theory of Regulation: Toward a Public-Choice Explanation of Federalism’

A Tests of the Tiebout Model
7. Edward M. Gramlich and Daniel L. Rubinfeld (1982), ‘Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses’
8. Paul W. Rhode and Koleman S. Strumpf (2003), ‘Assessing the Importance of Tiebout Sorting: Local Heterogeneity from 1850 to 1990’

B Does Structure Matter?
9. Susan Rose-Ackerman (1981), ‘Does Federalism Matter? Political Choice in a Federal Republic’
10. Dennis Epple and Alan Zelentiz (1981), ‘The Implications of Competition Among Jurisdictions: Does Tiebout Need Politics?’

C Vertical and Horizontal Competition
11. Albert Breton (1996), ‘A Retrospective Overview’ and ‘The Organization of Governmental Systems’

D Federalism, Development, and Self-Enforcing Federalism
12. Barry R. Weingast (1995), ‘The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development’

E Cooperative Federalism
13. Robert P. Inman and Daniel L. Rubinfeld (1997), ‘Rethinking Federalism’

F Optimal Taxation and Fiscal Instruments and Intergovernmental Grants
14. Robert P. Inman and Daniel L. Rubinfeld (1996), ‘Designing Tax Policy in Federalist Economies: An Overview’

G Leviathan and the Size of Government
15. Geoffrey Brennan and James M. Buchanan (1980), ‘Open Economy, Federalism, and Taxing Authority’
16. Jonathan Rodden (2003), ‘Reviving Leviathan: Fiscal Federalism and the Growth of Government’

H Distribution
17. John Donahue (1997), ‘Tiebout? Or Not Tiebout? The Market Metaphor and America’s Devolution Debate’
18. Dennis Epple and Thomas Romer (1991), ‘Mobility and Redistribution’
Name Index

Volume II


An introduction by the editors to both volumes appears in Volume I

A Commerce Clause
1. Saul Levmore (1983), ‘Interstate Exploitation and Judicial Intervention’

B Uniform State Laws
2. Larry E. Ribstein and Bruce H. Kobayashi (1996), ‘An Economic Analysis of Uniform State Laws’

C The Choice of State Versus Federal Law
3. William F. Baxter (1963), ‘Choice of Law and the Federal System’

D Contractual Choice of Law and Forum
4. Erin O’Hara and Larry E. Ribstein (2000), ‘From Politics to Efficiency in Choice of Law’

A Corporate Law and the Race to the Top
5. Roberta Romano (1985), ‘Law as a Product: Some Pieces of the Incorporation Puzzle’
6. Lucian Ayre Bebchuk (1992), ‘Federalism and the Corporation: The Desirable Limits on State Competition in Corporate Law’

B Antitrust and the Economics of Federalism
7. Frank H. Easterbrook (1983), ‘Antitrust and the Economics of Federalism’

C Environmental Regulation
8. Richard L. Revesz (2001), ‘Federalism and Environmental Regulation: A Public Choice Analysis’

D Taxation
9. Daniel Shaviro (1992), ‘An Economic and Political Look at Federalism in Taxation’

E Welfare Reform
10. Charles C. Brown and Wallace E. Oates (1987), ‘Assistance to the Poor in a Federal System’

F Crime
11. Doron Teichman (2005), ‘The Market for Criminal Justice: Federalism, Crime Control, and Jurisdictional Competition’

Name Index

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