| Abstract: | A crucial characteristic of federal systems is the distribution of regulatory power between the states and the national government. Four factors affect the distribution of powers in the U.S.: the geographic scope of issues, institutional competence at state and national levels, protection of democratic values, and economies of administration. Local or scattered occurrences of a problem, national governmental rigidity, desire for extensive public participation, spatial variation in regulatory preferences, and diseconomies of scale in administration favor state regulation. Widespread occurrences or national significance of a problem, state governmental rigidity, spillover effects, abhorrent local preferences, and economies of scale in administration favor national regulation. |
