Fiscal Federalism

Fiscal Federalism

Research

Matthew Mitchell, Pavel A. Yakovlev | May 13, 2015
A new study for the Mercatus Center at George Mason University shows that differences in these rules can have significant effects on policy. The study finds that states with separate taxing and spending committees spend less per capita than other states. Voters concerned about the growth of government may want to take a closer look at this phenomenon.
Randall G. Holcombe | Feb 26, 2015
In a comprehensive assessment of Florida’s fiscal policy, Dr. Randall Holcombe of Florida State University examines the state’s education and health care spending, pension system, taxes and budget, land use regulation, homeowners insurance, and many other key policies. To read the entire paper, please download the PDF. To view individual sections by issue, see below.
David T. Mitchell , Dean Stansel | Jan 20, 2015
In a new empirical study of state-level fiscal data for the Mercatus Center at George Mason University, economists David T. Mitchell and Dean Stansel examine these competing hypotheses and conclude that fiscal stress at the state level is positively correlated with spending growth and negatively correlated with the size of the state’s rainy day fund.
Matthew Mitchell, Anna Mills, Dana Williams | Jan 15, 2015
In this paper we discuss three ways that states can benefit patients by making their health care markets more competitive: they can abolish certificate-of-need laws, liberalize scope-of-practice regulations, and remove barriers to telemedicine.
Sarah Arnett | Jan 14, 2014
New research from Sarah Arnett examines states’ abilities to meet their financial obligations in the face of state budget challenges that have far outlasted the Great Recession. Fiscal simulations by the Government Accountability Office suggest that despite recent gains in tax revenues and pension assets, the long-term outlook for states’ fiscal condition is negative (GAO 2013). These simulations predict that states will have yearly difficulties balancing revenues and expenditures due, in part, to rising health care costs and the cost of funding state and local pensions.
Randall G. Holcombe, Christopher Boudreaux | Feb 03, 2011
What implications would a federal Value Added Tax have on individual states? This Mercatus on Policy looks at the impact it would have on Florida.

Testimony & Comments

Expert Commentary

Jan 16, 2015

During recessions, politicians typically blame a poor economy, unemployment, or reductions in federal aid for budget shortfalls. But when the money is flowing in, they often choose to go on a spending spree rather than to heed the lessons of the past and exercise fiscal discipline.
Nov 17, 2014

Economists call a fiscal illusion a systematic misperception of key fiscal parameters, often leading to distorted behavior by citizens and governments. In particular, the failure to perceive the full extent of tax burdens can lead taxpayers to misunderstand and underestimate the true cost of public goods and services and redistribution activities by the government.
Apr 08, 2013

If you’re finding it harder and harder to live in California, you’re not alone.
Apr 08, 2013

States like California and New York are living off the accumulated capital of past economic freedom. Now that the political tide has turned decisively against economic freedom in those states, they are shedding people and jobs and growing more slowly than the rest of the country. Places like the Dakotas, Carolinas, Oklahoma, and Texas, which have reversed their anti-market policies of the past, represent America’s dynamic economic future.
Apr 05, 2013

People follow jobs, and jobs follow freedom. That's one of the main results from the third and much improved edition of the Mercatus Center's "Freedom in the Fifty States: Index of Personal and Economic Freedom."
Mar 28, 2013

Google's auto-complete feature has long been a source of amusement, but as a recent feature on BuzzFeed makes clear, it also says a lot about what it's like to live and work in different states in the country.

Charts

This week’s charts use data from a National Public Radio compilation of public Department of Defense records of grants issued to state and local law enforcement bodies through its Excess Property Program, also known as DoD 1033. The charts display the total value of all known grants to municipalities in real 2013 dollars along with the total value and number of mine-resistant and combat vehicles distributed from 2006 to April 2014.

Experts

Podcasts

Jason Sorens | July 03, 2013
Jason Sorens Discusses Freedom in the 50 States on American Radio Journal

Recent Events

Media Clippings

Sarah Arnett | Jan 17, 2014
The Mercatus Center cited at Philly.com.
Sarah Arnett | Jan 16, 2014
The Mercatus Center cited at Investor's Business Daily.
| Jan 16, 2014
Mercatus cited at Union Leader.
Eileen Norcross | Aug 30, 2012
Eileen Norcross cited discussing high risk financing.
Charles Blahous | Jun 14, 2012
Charles Blahous comments on President Obama's recent statement that state and local governments are the prime source of weakness in the economy.
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