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Fiscal Decentralization and Trust

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  • Oguzhan Dincer

    (Department of Economics, Illinois State University, Normal, IL, USA)

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.

Suggested Citation

  • Oguzhan Dincer, 2010. "Fiscal Decentralization and Trust," Public Finance Review, , vol. 38(2), pages 178-192, March.
    • Handle: RePEc:sae:pubfin:v:38:y:2010:i:2:p:178-192
    DOI: 10.1177/1091142109358706
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    References listed on IDEAS

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    Cited by:

    1. Dincer, Oguzhan C., 2011. "Trust and schooling in the United States," Economics of Education Review, Elsevier, vol. 30(5), pages 1097-1102, October.
    2. Luis Diaz-Serrano & Andrés Rodríguez-Pose, 2015. "Decentralization and the Welfare State: What Do Citizens Perceive?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(2), pages 411-435, January.
    3. Zhiguo Wang & Liang Ma, 2014. "Fiscal Decentralization in China: A Literature Review," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 51-65, May.
    4. James Alm & Robert D. Buschman & David L. Sjoquist, 0. "Citizen "Trust" as an Explanation of State Education Funding to Local School Districts," Publius: The Journal of Federalism, CSF Associates Inc., vol. 41(4), pages 636-661.

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    Keywords

    fiscal decentralization; trust;

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