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Turning the Wheels: The Cost Factor

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  • Mukul Majumdar
  • Priya Mukherjee

Abstract

Corruption scandals are increasingly becoming rampant, especially in developing countries. The recent corruption scandals in India, in particular, have led to calls for legislation to establish an independent Public Ombudsman, who will be able to initiate investigations into allegations of corruption. In this paper we consider a typical problem that such an Ombudsman might face — that of initiating an enquiry into an allegation of corruption involving a large body of public officials. Recognizing that such investigations may be costly, we draw from the literature on statistical sampling to get estimates of the possible costs of an initial investigation, and report numerical results comparing the classical approach with the sequential sampling approach of Wald (1947).

Suggested Citation

  • Mukul Majumdar & Priya Mukherjee, 2013. "Turning the Wheels: The Cost Factor," Studies in Microeconomics, , vol. 1(1), pages 81-90, June.
    • Handle: RePEc:sae:miceco:v:1:y:2013:i:1:p:81-90
    DOI: 10.1177/2321022213488848
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    References listed on IDEAS

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    3. Olken, Benjamin A., 2006. "Corruption and the costs of redistribution: Micro evidence from Indonesia," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 853-870, May.
    4. Kimberly Ann Elliott, 1997. "Corruption and the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 12.
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