Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/179283
Authors: 
Farah, Alfa
Year of Publication: 
2018
Series/Report no.: 
CIW Discussion Paper 2/2018
Abstract: 
Fiscal disparity leads to a yardstick bias, in that incumbents in fiscally-rich jurisdictions can provide more public goods, extract more rents and yet have a higher probability to be reelected. This study further emphasizes disparity among jurisdictions, not only in terms of fiscal resources but also of costs of rent appropriation. In a setting in which jurisdictions with a higher fiscal capacity have lower costs of rent appropriation whilst those with a lower fiscal capacity have higher costs of rent appropriation, the difference in costs of rent appropriation might moderate the bias caused by the fiscal disparity.
Subjects: 
accountability
rent
fiscal capacity
institutions
yardstick competition
JEL: 
H71
H72
H77
D72
Document Type: 
Working Paper

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