In Government We Trust: The Role of Fiscal Decentralization
AbstractWe 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, macroeconomic 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.
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Bibliographic InfoPaper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper1118.
Length: 44 pages
Date of creation: 23 Jun 2011
Date of revision:
Contact details of provider:
Web page: http://aysps.gsu.edu/isp/index.html
Fiscal Decentralization; Government Trust; Social Capital;
Other versions of this item:
- Jenny E. Ligthart & Peter van Oudheusden, 2011. "In government we trust: the role of fiscal decentralization," Working Papers 2011/24, Institut d'Economia de Barcelona (IEB).
- Ligthart, J.E. & Oudheusden, P. van, 2011. "In Government We Trust: The Role of Fiscal Decentralization," Discussion Paper 2011-073, Tilburg University, Center for Economic Research.
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
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