Virtual versus Physical Government Decentralization: Effects on Corruption and the Shadow Economy

26 Pages Posted: 5 Dec 2016

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

James W. Saunoris

Eastern Michigan University

Date Written: Winter 2016

Abstract

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.

Suggested Citation

Goel, Rajeev K. and Saunoris, James W., Virtual versus Physical Government Decentralization: Effects on Corruption and the Shadow Economy (Winter 2016). Public Budgeting & Finance, Vol. 36, Issue 4, pp. 68-93, 2016. Available at SSRN: https://ssrn.com/abstract=2879720 or http://dx.doi.org/10.1111/pbaf.12105

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

James W. Saunoris

Eastern Michigan University ( email )

Eastern Michigan University
Ypsilanti, MI 48197
United States

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