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Economics

How Federalism and Decentralization Affect Policy Diffusion Across Subnational Governments

Quick fact

In the U.S., a policy adopted in one state has a ~30% chance of being adopted by another state within five years, driven by regional neighbors and ideological similarity—a phenomenon amplified by federalism.

Why this is interesting

Why do some laws, like same-sex marriage or cannabis legalization, suddenly appear in several states within a few years? The answer lies in how power is arranged between national and regional governments.