Ellis, Christopher J.Dincer, Oguzhan C., 1969-2005-03-222005-03-222005-03-01https://hdl.handle.net/1794/65616 p.Several empirical studies have found a negative relationship between corruption and the decentralization of the powers to tax and spend. In this paper we explain this phenomenon using a model of Yardstick Competition. Further, using data on government corruption in US states, we provide some new evidence that supports the theoretical findings.144785 bytesapplication/pdfen-USCorruptionDecentralizationYardstick competitionWorking Paper