Fiscal federalism and redistributive politics

Avinash Dixit, John Londregan

Research output: Contribution to journalArticlepeer-review

122 Scopus citations


We consider the interaction between redistributive politics at central and local levels in a federal system, and characterize the factors influencing success in redistributive politics in both federal and unitary systems. We examine how the political characteristics of different states and groups give them better or worse outcomes in a federal system as opposed to a unitary system. We examine possibilities of multiple equilibria with divided government between the two layers. We analyze the choice between block grants and matching grants. We also examine the impact of federalism on the incentives for geographic mobility.

Original languageEnglish (US)
Pages (from-to)153-180
Number of pages28
JournalJournal of Public Economics
Issue number2
StatePublished - May 1 1998
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics


  • D72
  • Fiscal federalism
  • H32
  • Interest groups
  • Redistribution


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