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IEB11-24_Ligthart.pdf (812.05 KB)

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Working paper

Publication date

2011

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cc-by-nc-nd, (c) Ligthart et al., 2011
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/116570

In government we trust: the role of fiscal decentralization

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Abstract

We measure the contribution of fiscal decentralization to trust in government. Using repeated cross-country survey data of individuals on several measures of trust in government over the 1994{2007 period, we estimate an ordered response model of the government trust and fiscal decentralization nexus. We control for unobserved country characteristics, macroeconòmic determinants, and individual characteristics. Our main finding is that fiscal decentralization increases trust in government. More specifically, a one percentage point increase in fiscal decentralization causes roughly a four-fifths of a percentage point increase in government trust. The beneficial effect of fiscal decentralization on trust in government is neither limited to nor necessarily large for relatively decentralized countries.

Subject

Descentralització administrativa, Dret fiscal, Capital social (Economia)

Subject (English)

Decentralization in government, Tax law, Capital stock

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IEB (Institut d’Economia de Barcelona) – Working Papers

Citation

LIGTHART, Jenny E. and OUDHEUSDEN, Peter van. In government we trust: the role of fiscal decentralization. IEB Working Paper 2011/24. [consulted: 12 of August of 2026]. Available at: https://hdl.handle.net/2445/116570

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