This paper examines the progressive development of the new institutional economics over the past quarter century. It begins by distinguishing four levels of social analysis, with special emphasis on the institutional environment and the institutions of governance. It then turns to some of the good ideas out of which the NIE works: the description of human actors, feasibility, firms as governance structures, and operationalization. Applications, including privatization, are briefly discussed. Its empirical successes, public policy applications, and other accomplishments notwithstanding, there is a vast amount of unfinished business.

This paper is a selective survey of fiscal federalism. It begins with a brief review and some reflections on the traditional theory of fiscal federalism: the assignment of functions to levels of government, the welfare gains from fiscal decentralization, and the use of fiscal instruments. It then explores a series of important topics that are the subject of current research: laboratory federalism, interjurisdictional competition and environmental federalism, the political economy of fiscal federalism, market-preserving federalism, and fiscal decentralization in the developing and transitional economies.

For more than a decade, there has been a great debate in the profession concerning the proper base for personal and business taxation. This debate has focused on the choice of the base versus the (or consumption) base. The concept of used in these debates is a comprehensive accretion measure often referred to as HaigSimons income, after the work of Robert M. Haig (1921) and Henry C. Simons (1938). This is the standard concept of income that has been used (with several variations) in tax policy analysis in the postwar period. However, it appears not to be widely recognized that, although Haig did ultimately settle on accretion income as the best feasible tax base, he definitely saw this as a second-best measure of true income. As will become clear, reexamination of Haig's famous article reveals that Haig actually felt that consumption expenditure would be a better measure of true income than accretion income, and he would have preferred a tax on this base-that is, he preferred what today would be called a consumption tax. He felt that

I. The Brotherhood always opposed to dual unionism, 465. — Dispute with the Amalgamated Wood Workers, 467. — Matter brought to attention of A. F. of L., 468. — Downey decision, giving all mill work to Amalgamated, disregarded by Brotherhood, 471. — Aggressive policy adopted by Amalgamated, 472. — Terms of its surrender dictated by Brotherhood, 473. — Dispute with Amalgamated Society of Carpenters, 473. — Strasser decision rejected by Brotherhood, 475. — Plan of amalgamation agreed upon, 476. — Hostilities reopened, resulting in defeat of Amalgamated Society, 476. — II. Trade jurisdictional disputes; with Sheet Metal Workers' Union, 480. — Brotherhood suspended from Building Trades Department for refusal to accept Gaynor decision, 481. — Tampa decision annulled and erection of metal trim awarded to carpenters, 483. — Brotherhood for third time suspended from Building Trades Department, 485. — III. Cost of the jurisdictional disputes, 486. — In spite of heavy cost Brotherhood has probably made a net gain, 491. — Its policy in accord with trade-union theory, 493. — Prospects for elimination of jurisdictional disputes not bright, 493.