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Judiciaries in Corrupt Societies

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  • Mikael Priks

Abstract

Recent empirical work shows that judicial dependence can explain high levels of corruption. This paper examines how the dependence of judiciaries influences corruption at different levels of the government in a model where the central government, low-level officials, and the judiciary are corrupt. In the model, the central government sells offices to low-level officials and demands ex-post payments enforced by the judiciary. Because an independent judiciary can rule against the central authority and accept bribes from stealing low-level officials, it reduces corruption at the higher level of government but promotes corruption at the lower level. Therefore, even if highly corrupt, an independent judiciary may reduce total corruption. We provide empirical evidence which is in line with this result.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2007/wp-cesifo-2007-06/cesifo1_wp2008.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2008.

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Date of creation: 2007
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Handle: RePEc:ces:ceswps:_2008

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Keywords: judiciaries; corruption;

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Cited by:
  1. Goel, Rajeev K. & Nelson, Michael A., 2013. "Effectiveness of whistleblower laws in combating corruption," BOFIT Discussion Papers 9/2013, Bank of Finland, Institute for Economies in Transition.
  2. Rajeev Goel & Michael Nelson, 2011. "Measures of corruption and determinants of US corruption," Economics of Governance, Springer, vol. 12(2), pages 155-176, June.
  3. Rajeev K. Goel & Michael A. Nelson, 2010. "Decentralization of the Size and Scope of Local Governments and Corruption," Working Papers CEB 10-031, ULB -- Universite Libre de Bruxelles.

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