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Does Transparency Reduce Corruption?

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  • Strimbu, Octavian
  • Gonzalez, Patrick

Abstract

Does a better monitoring (transparency) of officials lowers the incidence of corruption ? Using a common agency game with imperfect information, we show that the answer depends on the measure of corruption that one uses. More transparency lowers the prevalence of corruption but it may raise the average bribe as it motivates the corruptor to bid more aggressively for the agent’s favour. We show that transparency affects the prevalence of corruption at the margin through a competitive effect and an efficiency effect.

Suggested Citation

  • Strimbu, Octavian & Gonzalez, Patrick, 2013. "Does Transparency Reduce Corruption?," Working Papers 158368, University of Laval, Center for Research on the Economics of the Environment, Agri-food, Transports and Energy (CREATE).
    • Handle: RePEc:ags:ulavwp:158368
    DOI: 10.22004/ag.econ.158368
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    References listed on IDEAS

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    More about this item

    Keywords

    Public Economics;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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