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Corruption and inflation: evidence from US states

Author

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  • Hussein Elkamel

Abstract

Purpose - The purpose of this paper is to show that states where corruption is greater also have higher levels of inflation. Design/methodology/approach - Using a sample of all US states through the period 1992-2007 and various factors common across states that could impact the level of corruption or inflation, multiple regression techniques are used to determine corruption impact to inflation. Findings - The study finds that corruption contributes, along with aid transfer, positively to inflation in the US states. The results are robust even after scaling the corruption variable to different determinants. Originality/value - While there is some evidence on the relationship between corruption and inflation in cross-country dataset, there is no such evidence on it within country dataset. This paper, however, provides evidence on the relationship between corruption and inflation using state-level data of the US states.

Suggested Citation

  • Hussein Elkamel, 2019. "Corruption and inflation: evidence from US states," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 11(2), pages 251-262, January.
    • Handle: RePEc:eme:jfeppp:jfep-05-2018-0081
    DOI: 10.1108/JFEP-05-2018-0081
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    Citations

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    Cited by:

    1. Bahník, Štěpán & Vranka, Marek Albert, 2020. "Experimental test of the effects of punishment probability and size on the decision to take a bribe," OSF Preprints cfwvj, Center for Open Science.

    More about this item

    Keywords

    Inflation; Corruption; Public economics; E62; H72; D73; H83;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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