State initiatives in state-Federal relations
Based upon historical analysis, this paper examines the proper role of regulation at the state, regional, and federal levels of government. Four areas of inquiry are highlighted by the so-called crises in public utility industries. The first question is whether there should be a shift from passive to active regulation. Second, is increased regulatory power needed at regional and Federal levels of government in order to achieve an appropriate balance between state, regional, and Federal government, or does overcentralization breed economic inefficiency and autocratic decisions. Third, should regulators have a higher degree of power and control over private-utility companies to accomplish objectives mandated by state legislatures and Congress, or is the real problem that private incentives have not been given enough leeway to solve the problems that confront us. And, fourth, if we are to address today's opportunities, should planning efficiency and public interest norms displace the time-honored competitive-market standards of economic efficiency and social justice as the basis for regulatory decisions. At the root of these issues, there is a clash between those arguing for the use of a planning paradigm to solve economic problems and those advocating reliance upon market forces. Economic imperatives lead us to expect a continuation of a trend which resolves the market/nonmarket balance in favor of more government participation. Hence, the scope of state initiatives and the range of opportunities for policy action, will in fact, be defined by economic forces larger than the current debate on the issues. 8 references.
- OSTI ID:
- 5228789
- Journal Information:
- Am. Econ. Rev.; (United States), Vol. 70:2
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
REGULATIONS
GOVERNMENT POLICIES
STATE GOVERNMENT
ECONOMIC ANALYSIS
ECONOMIC POLICY
EVALUATION
MARKET
NATIONAL GOVERNMENT
REGIONAL COOPERATION
COOPERATION
ECONOMICS
293000* - Energy Planning & Policy- Policy
Legislation
& Regulation
290200 - Energy Planning & Policy- Economics & Sociology