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Persistent Court Corruption

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  • Philip Bond
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    Abstract

    Corruption among court officials varies widely across countries and exhibits considerable intertemporal persistence. I present a model of court corruption in which there are multiple equilibria, differentiated by corruption levels. In the model, courts provide incentives for individuals to take/abstain from certain actions. High corruption levels undermine incentive provision and necessitate larger penalties. Larger penalties in turn increase the potential bribes that a court official can collect and so attract more dishonest officials to court employment. This feedback effect generates multiple equilibria. Paying court officials wages sufficiently above the market-clearing rate can eliminate the high corruption equilibrium. Copyright (C) The Author(s). Journal compilation (C) Royal Economic Society 2008.

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    Bibliographic Info

    Article provided by Royal Economic Society in its journal The Economic Journal.

    Volume (Year): 118 (2008)
    Issue (Month): 531 (08)
    Pages: 1333-1353

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    Handle: RePEc:ecj:econjl:v:118:y:2008:i:531:p:1333-1353

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    Cited by:
    1. Anderlini, Luca & Felli, Leonardo & Riboni, Alessandro, 2011. "Why Stare Decisis?," CEPR Discussion Papers 8266, C.E.P.R. Discussion Papers.
    2. Van-Ha Le & Jakob de Haan & Erik Dietzenbacher, 2013. "Do Higher Government Wages Reduce Corruption? Evidence Based on a Novel Dataset," CESifo Working Paper Series 4254, CESifo Group Munich.
    3. Guenther G. Schulze & Bambang Suharnoko Sjahrir & Nikita Zakharov, 2013. "Corruption in Russia," Discussion Paper Series 22, Department of International Economic Policy, University of Freiburg, revised Apr 2013.
    4. Esteban Jaimovich & Juan Pablo Rud, 2009. "Excessive Public Employment and Rent-Seeking Traps," Carlo Alberto Notebooks 118, Collegio Carlo Alberto.

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