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Coase And The Constitution: A New Approach To Federalism, F.E Guerra-Pujol

Richmond Public Interest Law Review

This paper proposes a new approach to the centuries-old question of federalism. In a word, we approach the problem offederalism from a Coasian or property-rights perspective. That is, instead of attempting to draw an arbitrary boundary line between state and federal spheres of power through traditional legal or semantic analysis of the constitution and previous judicial precedents, this paper proposes the creation of alternative 'federalism markets" in which governmental powers and functions would be allocated to Congress, the states, or even private firms through decentralized auction mechanisms and secondary markets. The paper is divided into five parts. Following a brief …