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“Plata o Plomo?†: Bribe and Punishment in a Theory of Political Influence

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  • DAL BÓ, ERNESTO
  • DAL BÓ, PEDRO
  • DI TELLA, RAFAEL

Abstract

We present a model where groups attempt to influence policies using both bribes (plata, Spanish for silver) and the threat of punishment (plomo, Spanish for lead). We then use it to make predictions about the quality of a country's public officials and to understand the role of institutions granting politicians with immunity from legal prosecution. The use of punishment lowers the returns from public office and reduces the incentives of high-ability citizens to enter public life. Cheaper plomo and more resources subject to official discretion are associated with more frequent corruption and less able politicians. This predicts that violence in a country will typically go together with corruption and worse politicians. Moreover, the possibility of punishment changes the nature of the influence game, so that even cheaper plata can lower the ability of public officials. Protecting officials from accusations of corruption (immunity) will decrease the frequency of corruption if the judiciary is weak and may increase the quality of politicians. These predictions cannot emerge from a traditional model where only bribes are used.

Suggested Citation

  • Dal Bã“, Ernesto & Dal Bã“, Pedro & Di Tella, Rafael, 2006. "“Plata o Plomo?†: Bribe and Punishment in a Theory of Political Influence," American Political Science Review, Cambridge University Press, vol. 100(1), pages 41-53, February.
    • Handle: RePEc:cup:apsrev:v:100:y:2006:i:01:p:41-53_06
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    Cited by:

    1. Sanchari Choudhury, 2021. "Regulation and Corruption: Evidence from the United States," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 897-934, August.
    2. Bordignon, Massimo & Gamalerio, Matteo & Turati, Gilberto, 2020. "Manager or professional politician? Local fiscal autonomy and the skills of elected officials," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    3. Stephane Wolton, 2015. "Political conflicts, the role of opposition parties, and the limits on taxation," Journal of Theoretical Politics, , vol. 27(4), pages 570-587, October.
    4. Ernesto Dal Bó & Pedro Dal Bó & Erik Eyster, 2018. "The Demand for Bad Policy when Voters Underappreciate Equilibrium Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(2), pages 964-998.
    5. Carlos Scartascini & Mariano Tommasi, 2012. "The Making of Policy: Institutionalized or Not?," American Journal of Political Science, John Wiley & Sons, vol. 56(4), pages 787-801, October.
    6. Caglayan, Mustafa & Flamini, Alessandro & Jahanshahi, Babak, 2021. "Hindering human capital accumulation: A hidden cost of the silent mafia?," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 828-845.
    7. Tamara Fioroni & Andrea Mario Lavezzi & Giovanni Trovato, 2023. "Organized Crime, Corruption and Economic Growth," Discussion Papers 2023/298, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    8. Lonsky, Jakub, 2020. "Gulags, crime, and elite violence : origins and consequences of the Russian mafia," BOFIT Discussion Papers 24/2020, Bank of Finland, Institute for Economies in Transition.
    9. Julio A. Ramos Pastrana, 2021. "Who’s getting the office? Party dominance and elected executives’ career path," Kyklos, Wiley Blackwell, vol. 74(2), pages 270-297, May.
    10. Marco Di Cataldo & Nicola Mastrorocco, 2022. "Organized Crime, Captured Politicians, and the Allocation of Public Resources [“Mafiaand Public Spending: Evidence on the Fiscal Multiplier from a Quasi-Experiment]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 38(3), pages 774-839.
    11. repec:zbw:bofitp:2020_024 is not listed on IDEAS
    12. Maria Rosaria Alfano & Anna Laura Baraldi & Erasmo Papagni, 2020. "Do Voters Choose Better Politicians than Political Parties? Evidence from a Natural Experiment in Italy," Working Papers 2020.24, Fondazione Eni Enrico Mattei.
    13. Valeria Palanza & Carlos Scartascini & Mariano Tommasi, 2012. "On the Institutionalization of Congress(es) in Latin America and Beyond," Research Department Publications 4817, Inter-American Development Bank, Research Department.
    14. Cavalieri, Marina & Finocchiaro Castro, Massimo & Guccio, Calogero, 2023. "Organised crime and educational outcomes in Southern Italy: An empirical investigation," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    15. Michele Battisti & Giovanni Bernardo & Andrea Mario Lavezzi & Giuseppe Maggio, 2022. "Shooting down the price: Evidence from Mafia homicides and housing prices," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 659-683, June.

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