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Monitoring Corruptible Politicians

Author

Listed:
  • Gustavo J. Bobonis
  • Luis R. Cámara Fuertes
  • Rainer Schwabe

Abstract

Does monitoring corrupt activities induce a sustained reduction in corruption? Using longitudinal data on audits of municipal governments in Puerto Rico, we show corruption is considerably lower in municipalities with timely audits—before elections. However, these municipalities do not exhibit decreased levels of corruption in subsequent audits, even while mayors in these benefit from higher reelection rates. Our results suggest that audits enable voters to select responsive but corruptible politicians to office. Audit programs must disseminate results when they are most relevant for voters—shortly before an election—and ensure that these programs are sustained, long-term commitments.

Suggested Citation

  • Gustavo J. Bobonis & Luis R. Cámara Fuertes & Rainer Schwabe, 2016. "Monitoring Corruptible Politicians," American Economic Review, American Economic Association, vol. 106(8), pages 2371-2405, August.
    • Handle: RePEc:aea:aecrev:v:106:y:2016:i:8:p:2371-2405
    Note: DOI: 10.1257/aer.20130874
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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