Much of the empirical work to date has not adequately distinguished [game-theoretic] learning-based policy diffusion from [decision-theoretic] myopic individual adoptions.
Those who advocate federalism argue that devolution improves policy outcomes nationwide by providing opportunities for local experimentation. In the words of Louis Brandeis, justice of the U.S. Supreme Court (1932):
It is one of the happy incidents [...]
Putting it all together, Nicholson-Crotty is telling us that federal grants-in-aid are little more than a redistribution of the income tax burden from liberal states to conservative ones.
The federal government gives billions of dollars to the 50 state governments as grants-in-aid, whether to fund schools, Medicaid, or whatever. The idea is this: The federal government [...]
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