The study by Jenny E. Ligthart and Peter Van Oudheusden of Tilburg University shows that fiscal decentralization increases citizens’ trust in government. More specifically, a one percentage point increase in fiscal decentralization causes roughly a four-fifths of a percentage point increase in citizens’ confidence. The results are important from a political point of view, because the recommendations made so far have been based only on the efficiency of decentralization in resource allocation. Ligthart and Van Oudheusden recently participated in the fourth IEB Workshop on Fiscal Federalism.