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Trust no more? On the lasting effects of corruption scandals

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  • Solé-Ollé, Albert
  • Sorribas-Navarro, Pilar

Abstract

We examine whether the break out of a corruption scandal involving the incumbent undermines trust in government, and whether this effect fades in the short term or whether it has lasting effects. We use a novel dataset with information on local corruption scandals occurring in Spain in the period 1999–2009, and data on the level of trust expressed in local politicians, obtained from a survey conducted in 2009. We find that corruption scandals have a marked effect both on levels of trust in local politicians and on perceptions of corruption. We also show that, while these perceptions gradually revert back to their pre-scandal levels, the effect on trust is more persistent. Using a mediation analysis we show that other side effects of corruption (including, government fragmentation and fiscal stress) are responsible for the persistence of the effect on trust.

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  • Solé-Ollé, Albert & Sorribas-Navarro, Pilar, 2018. "Trust no more? On the lasting effects of corruption scandals," European Journal of Political Economy, Elsevier, vol. 55(C), pages 185-203.
    • Handle: RePEc:eee:poleco:v:55:y:2018:i:c:p:185-203
    DOI: 10.1016/j.ejpoleco.2017.12.003
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    2. Miguel Ángel Borrella-Mas & Martin Rode, 2021. "Love is blind: partisan alignment and political corruption in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(3), pages 423-451, September.
    3. Ravenda, Diego & Giuranno, Michele G. & Valencia-Silva, Maika M. & Argiles-Bosch, Josep M. & García-Blandón, Josep, 2020. "The effects of mafia infiltration on public procurement performance," European Journal of Political Economy, Elsevier, vol. 64(C).
    4. Shtudiner, Zeev & Klein, Galit, 2020. "Gender, attractiveness, and judgment of impropriety: The case of accountants," European Journal of Political Economy, Elsevier, vol. 64(C).
    5. Joaquín Artés & Juan Luis Jiménez & Jordi Perdiguero, 2023. "The effects of revealing the prosecution of political corruption on local finances," Empirical Economics, Springer, vol. 64(1), pages 249-275, January.
    6. Spyridon Boikos & Mehmet Pinar & Thanasis Stengos, 2023. "Bribery, on-the-job training, and firm performance," Small Business Economics, Springer, vol. 60(1), pages 37-58, January.
    7. Choudhury, Sanchari, 2019. "WTO membership and corruption," European Journal of Political Economy, Elsevier, vol. 60(C).
    8. Matteo Gamalerio & Massimo Morelli & Carlos Sanz & Albert Solé-Ollé & Pilar Sorribas-Navarro & Olle Folke & Johanna Rickne, 2020. "The Rise of New Political Parties in Western Democracies / El auge de nuevos partidos políticos en las democracias occidentales / L’ascens de nous partits polítics en les democràcies occidentals," IEB Reports ieb_report_2_2020, Institut d'Economia de Barcelona (IEB).
    9. Giorgio Gulino & Federico Masera, 2021. "Contagious Dishonesty: Corruption Scandals and Supermarket Theft," Working Papers 1267, Barcelona School of Economics.

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    More about this item

    Keywords

    Corruption; Trust;

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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