The Effect of Fiscal Decentralization on Corruption: A Non-linear Hypothesis

DOI

This study advances the literature on the effect of decentralization on corruption by proposing a theoretical motivation for the hypothesis that the corruption-minimizing decentralization arrangement prescribes intermediate decentralization degrees: a ‘middle’ decision-making power of local governors may mitigate the trade-off between the rent-seeking incentive for local politicians and the effectiveness of their voters’ monitoring. The estimation of a non-linear empirical model strongly confirms that a decentralization degree between 15% and 21% minimizes corruption even through different estimation procedures, introduction of control variables, and the use of internal and external IV and of alternative decentralization and corruption measurements.

Identifier
DOI https://doi.org/10.15456/ger.2018037.123622
Metadata Access https://www.da-ra.de/oaip/oai?verb=GetRecord&metadataPrefix=oai_dc&identifier=oai:oai.da-ra.de:623888
Provenance
Creator Alfano, Maria Rosaria; Baraldi, Anna Laura; Cantabene, Claudia
Publisher ZBW - Leibniz Informationszentrum Wirtschaft
Publication Year 2018
Rights Creative Commons Attribution 4.0 (CC-BY); Download
OpenAccess true
Contact ZBW - Leibniz Informationszentrum Wirtschaft
Representation
Language English
Resource Type Collection
Discipline Economics