Book excerpt: '. . . this compilation of articles to fiscal federalism and local finance is of highest quality and a must for each scholar interested in this field. Moreover, it is edited by Wallace Oates who is the father of the analysis of fiscal federalism. Thus, it is no surprise that the book contains the most outstanding classical papers in the field. All in all, this selection of papers is the best that can be drawn from the literature. . . . this volume . . . has been published right in time to set the pace for the future.' - Lars P. Feld, Kyklos This volume presents an authoritative collection of the most significant papers on fiscal federalism and local finance. In addition to some classic papers, it offers clear and insightful presentations of conventional wisdom in the field as well as recent papers which illuminate important issues and point the way to ongoing research. Topics covered include federal tax structure and the division of fiscal functions among levels of government, the effect of local taxes on economic growth, the systems of governmental grants, income redistribution, the theory and practice of local finance and fiscal decentralization in developing countries and transitional economies.