Department of Economics


Date of this Version

January 1973


Published in Nebraska Journal of Economics & Business 12:1 (Winter 1973), pp. 23-42. Copyright © 1973. Used by permission.


The purpose of this article is to determine what theoretical and policy conclusions are consistent with the orthodox theory of social and merit wants, the treatment of distribution as a component of efficiency, and a Planning-Programming-Budgeting System when they are placed in a federalist setting with states’ rights and local autonomy. The conclusion is that neither matching nor equalization grants should be used in intergovernmental fiscal relations and that use of traditional intergovernmental fiscal devices will not assure success of a programmed budget.

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