Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223509 
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8437
Publisher: 
Center for Economic Studies and Ifo Institute (CESifo), Munich
Abstract: 
This paper empirically evaluates the impact of accountability on fiscal capacity. It adopts an instrumental variable approach using, as an instrument, the measurement of how far, on average, official language differs from ordinary language. The main hypothesis is that if the average citizen cannot understand the central government and the elite, she will find it difficult/impossible to hold the government to account. The first stage results suggest that this instrument is strong and reliable and is negatively correlated with our measure of accountability in line with the hypothesis. The results in the second stage support the main hypothesis. Our results are robust to plausible exogeneity tests and different specifications.
Subjects: 
language
accountability
fiscal capacity
insulation
JEL: 
H20
D02
D72
C26
Document Type: 
Working Paper
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