a n wa r s h a h 7 A lthough statistics on corruption are often questionable, the data suggest that corruption accounts for a significant proportion of economic activity. In Kenya " questionable " public expenditures noted by the controller and auditor general in 1997 amounted to 7.6 percent of GDP. In Latvia a recent World Bank survey found that more than 40 percent of households and enterpris...

This paper applies a novel methodology to measure corruption levels in U.S. states, leading to insights which could be useful to policymakers in their effort to reduce unethical behavior. The level of public corruption is difficult to quantify because much of it goes undetected and because different cultures and jurisdictions have different definitions and different degrees of tolerance for cor...

The same globalisation of markets and developmental inequalities that have helped draw renewed attention to problems of corruption in recent years also confront us with the dilemma of cross-border corruption. Crossborder corruption involving international interests, actors, capital and economic processes (both licit and illicit) is a potentially serious problem in affluent and developing countr...

This paper contributes to the literature on competition and corruption, by drawing on records from Calciopoli, a judicial inquiry carried out in 2006 on corruption in the Italian soccer league. Unlike previous studies, we can estimate the determinants of match rigging and use this information in identifying corruption episodes in years in which there are no pending judicial inquiries. We find e...

Using a large six-city exit poll from 2000, we examine popular judgments of what constitutes ‘‘political corruption’’ in the United States. We find two distinct evaluative dimensions: corruption understood as lawbreaking, and corruption as favoritism. These judgments are heavily conditioned by the voter’s socioeconomic background and are politically consequential. Subjective understandings of ‘...

Indonesia has a tradition of corruption among local officials who harass and collect bribes from firms. This paper examines whether corruption is affected by a change in institutions introducing local democratization and by party composition of local assemblies. Democratization occurred in 1999 and decentralization in 2001. We have firm-level data for 2001 and 2004. The 2001 data benchmark corr...

The principles and findings from internal government audits (aimed at generating recommendations to improve compliance with anti-corruption regulations) can greatly contribute to the wider anti-corruption literature. Internal audit techniques can overcome the weaknesses of the four predominant approaches to evaluating anti-corruption regulatory performance – the systems design approach, the ad-...

This literature provided a basis for SD model building. Additional experiences in Indonesia maintained model realism. One SD corruption overview is based on the oft cited idea that 'amount of corruption' is part of reinforcing loops linked to 'amount of bureaucratic red tape.' In this view, corruption is imbedded in positive feedback loops also linking it to lowered economic openness, a weak le...

This paper empirically analyzes the main microeconomic determinants of two forms of corruption supply, administrative corruption and state capture, by Maghrebi firms. This study is based on a new database of near 600 Algerian, Moroccan and Tunisian firms. I show that tax evasion is a major factor of the engagement of firms in administrative corruption. The latter increases with the share of sal...

Using different combinations of culture, development and openness to international trade, we test the variability in the incidences of corruption at different stages of development or in other words the non-linearities in the relationship between corruption and development. We employ formal threshold model developed by Hansen (2000), and unlike the existing literature, we find that: (1) non-lin...