A Fiscal Federalism Approach to Infrastructure Policy
Charles R. Hulten and Robert M. Schwab
,
2
(
27
)
Regional Science and Urban Economics
139-159
April
1997
Abstract
This paper presents a fiscal federalism perspective on infrastructure policy. It begins by looking at the theory of fiscal federalism and then turns to the actual division of the responsibility for providing public capital in the United States. The paper then argues that it is difficult to square theory and actual practice: a good case can be made that national infrastructure policy is inconsistent with the principles of fiscal federalism in a number of important respects.