Revenue decentralization and inflation: a re-evaluation

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

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fiscal decentralization, Inflation, Sub-national tax autonomy
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H29 - Other; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H71 - State and Local Taxation, Subsidies, and Revenue

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