Bulletin n. 1/2010 | ||
July 2010 | ||
Dincer Oguzhan C., Ellis Christopher J., Waddell Glen R. |
||
Corruption, decentralization and yardstick competition | ||
in Economics of Governance , Volume 11, Number 3 , 2010 , 269-294 | ||
Several empirical studies have found a negative relationship between corruption and the decentralization of the powers to tax and spend. In this paper we explain this phenomenon using a model of Yardstick Competition. Using data on federal corruption-related convictions in U.S. states, we also provide new evidence that points to the existence of a spatial autoregressive component to explaining corruption. We interpret this as consistent with the theoretical findings. | ||