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An Axiomatic Approach to the Measurement of Corruption: Theory and Applications

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  • James E. Foster
  • Andrew W. Horowitz
  • Fabio Méndez
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    Abstract

    No generally accepted framework exists for constructing and evaluating measures of corruption. This article shows how the axiomatic approach of the poverty and inequality literature can be applied to the measurement of corruption. A conceptual framework for organizing corruption data is developed, and three aggregate corruption measures consistent with axiomatic requirements are proposed. The article also provides guidelines for empirical applications of corruption measures and discusses data requirements. A brief empirical example illustrates how each of the measures captures a distinct view of corruption that yields a different ranking. To the authors' knowledge, this article provides the first analysis of corruption measurement using an axiomatic framework. Copyright 2012, Oxford University Press.

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    Bibliographic Info

    Article provided by World Bank Group in its journal The World Bank Economic Review.

    Volume (Year): 26 (2012)
    Issue (Month): 2 ()
    Pages: 217-235

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    Handle: RePEc:oup:wbecrv:v:26:y:2012:i:2:p:217-235

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    Cited by:
    1. Jahedi, Salar & Méndez, Fabio, 2014. "On the advantages and disadvantages of subjective measures," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 97-114.

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