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Virtual Versus Physical Government Decentralization: Effects on Corruption and the Shadow Economy
Author(s) -
Goel Rajeev K.,
Saunoris James W.
Publication year - 2016
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/pbaf.12105
Subject(s) - decentralization , shadow (psychology) , language change , government (linguistics) , economics , economic system , business , market economy , psychology , linguistics , philosophy , literature , psychotherapist , art
This paper examines the relative effectiveness of cross‐national virtual decentralization and physical decentralization of government functions on corruption and the shadow economy. Results show that while virtual decentralization reduces both corruption and the shadow economy, physical decentralization reduces only the shadow economy. The e‐government results are robust to alternate measures and specifications, while those of government tiers are not.