The first two chapters provided the theories of public provision and fiscal federalism.
All governments, even that of reluctant Germany, understand that they have taken a step towards a kind of fiscal federalism.
Much depends on whether the League will achieve its fiscal federalism, and, if it does, how it USES its new powers.
The traditional theory of fiscal federalism is mainly about the reasonable distribution of public-section functions and revenue resources among different levels of the governments.
America's fiscal federalism tilts in the opposite direction: most states must run balanced budgets and so cut spending in hard times.
The efficiency of public sector depends on the division in power and responsibility acting as the important part in fiscal federalism, tax division connects the implement of government function.
