Fiscal Decentralization and Trust

Oguzhan Dincer
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Oguzhan Dincer: Department of Economics, Illinois State University, Normal, IL, USA

Public Finance Review, 2010, vol. 38, issue 2, 178-192

Abstract: 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.

Keywords: fiscal decentralization; trust (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:38:y:2010:i:2:p:178-192

DOI: 10.1177/1091142109358706

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