Bulletin n. 2/2010 | ||
October 2010 | ||
Oguzhan Dincer |
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Fiscal Decentralization and Trust | ||
in Public Finance Review , Vol. 38, No. 2 , 2010 , 178-192 | ||
Using data from U.S. states and various measures of decentralization, I investigate the relationship between fiscal decentralization and trust. I find that a one standard deviation increase in either revenue decentralization or expenditure decentralization causes the share of trusting people in a state to increase by almost 4 percentage points. A one standard deviation increase in the number of governments, however, causes trust to increase by almost 2.5 percentage points. The results are robust to endogeneity. | ||