Several empirical studies have found a negative relationship between corruption and the decentralization of the powers to tax and spend. In this paper we explain this phenomenon using a model of Yardstick Competition. Using data on federal corruption-related convictions in U.S. states we propose...

We investigate the relationship between economic freedom and corruption using data from U.S. states covering almost a quarter of a century. Our study advances the existing literature on several fronts. First, instead of using subjective cross-country corruption indices assembled by various...

I analyze the effects of ethnic and religious diversity on corruption. Using data from US states, I find a positive and linear relationship between ethnic/religious polarization and corruption and an inverse-U-shaped relationship between ethnic/religious fractionalization and corruption.

Using recently developed indices of fractionalization and polarization, we analyze the direct and indirect effects of ethnic and religious heterogeneity on income inequality and on welfare programs across US states. We find strong evidence (1) that there is a positive relationship between ethnic...

In this study we analyze the effects of corruption on income inequality and poverty. Our analysis advances the existing literature in four ways. First, instead of using corruption indices assembled by various investment risk services, we use an objective measure of corruption: the number of...

Purpose – The purpose of this paper is to investigate the relationships between measures of ethnic and religious heterogeneity on the one hand and measures of inequality and redistribution on the other, using state‐level US data. Design/methodology/approach – The relationship between...