(University of Oregon, Dept of Economics, 2005-03-01) Ellis, Christopher J.; Dincer, Oguzhan C., 1969-
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.
