Munich Personal RePEc Archive

Revenue decentralization and inflation: a re-evaluation

Baskaran, Thushyanthan (2011): Revenue decentralization and inflation: a re-evaluation. Forthcoming in: Economics Letters

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Abstract

A problematic feature of the existing empirical literature on the relationship between revenue decentralization (RD) and inflation is the use of inaccurate measures for RD. Using a newly constructed measure for RD that accounts for over-time changes in sub-national tax autonomy, this paper finds that RD leads to lower inflation.

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