The Normative Political and Economic Underpinnings of the Current Devolution Movement
U.S. intergovernmental relations have been the focus of economic and political theorists since Colonial times. What strands of political philosophy and economic theory have been cited by proponents and opponents of devolution? To what extent have protagonists in the devolution debate used normative theories as rationalizations to further political and economic interests? What is the political economy of the current devolution movement?

Paper: John Kincaid
Panelists: David R. Beam, David T. Ellwood, William F. Fox, and William B. Modahl
Moderator: George Latimer

How Will State and Local Governments Respond to the Challenges and Opportunities of the New Federalism?
Some policymakers are concerned that many state governments will lack the fiscal capacity to assume devolved responsibilities, meet demands for traditional state services, and provide adequate aid for local governments. This study evaluates the fiscal capacity, fiscal need, and tax effort of the 50 states and the District of Columbia, following the approach developed by the U.S. Advisory Commission on Intergovernmental Relations. The study also analyzes Census and NIPA statistics to gain insights into the capacity of states to meet the challenges and exploit the opportunities of the new federalism.