Revenue Reallocation in
the Federal System:
Options and Prospects
MW. CRAIG STUBBLEBINE
Redirecting federal funding. Block grants, matching grants-in-aid. Reversing the incentive skew. Competition in interfiscal jurisdictions. Freedom of choice.
Debates over public policy are in part exercises in prediction. At the core of the administration's "New Federalism" proposals are changes in taxing and spending arrangements. To evaluate these changes, one must understand their probable effects not simply on public spending but also on the incentives built into the political process. How will state and local