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DECENTRALIZATION   Tags: decentralization  

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Research Papers

Albornoz, Facundo & Antonio Cabrales, “Decentralization, Political Competition and Corruption,” Working Paper, Department of Economics, Universidad Carlos III de Madrid (2013).
Summary: This paper studies the effect of decentralization on corruption in a political agency model from the perspective of a region. In a model where corruption opportunities are lower under centralization at each period of time, decentralization makes easier for citizens to detect corrupt incumbents. As a consequence, the relationship between fiscal decentralization and corruption is conditional on political competition: decentralization is associated with lower (higher) levels of corruption for sufficiently high (low) levels of political competition.  The paper also tests this prediction and concludes that it is empirically supported. Also, the paper shows how the preferences of voters and politicians about fiscal decentralization can diverge in situations where political competition is weak. 
Fisman, R. and R. Gatti. “Decentralization and Corruption: Evidence Across Countries,” World Bank Working Paper 2290 (2000).
Summary: Empirical estimates suggest that fiscal decentralization in government spending is associated with lower government corruption. The relationship between decentralization of government activities and the extent of rent extraction by private parties is an important element in the recent debate on institutional design.The authors make a first attempt at examining the issue empirically, by looking at the cross-country relationship between fiscal decentralization and corruption as measured by a number of different indices. 
Fjeldstad, Odd-Helge. “Decentralisation and Corruption: A Review of the Literature,” CMI Working Papers (2004).
Summary: "The purpose of this study is to assess the ‘state-of-the-art’ in the international literature on decentralisation and corruption. The main objectives of the study are to organise current  knowledge on decentralisation and corruption, discuss the major controversies within and across disciplines and to identify some areas in most need of further research, with an emphasis on questions relevant to development policy. Thus, the study is organised as a literature review, extracting and commenting on the core elements of and major areas covered by these studies in anthropology, economics, law, and political science." [Author]

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