Legalizing Bribe Giving
AbstractA model of harassment bribes (paid for services one is entitled to) is developed and used to analyze the recent proposal to legalize paying bribes while increasing fines on accepting bribes. We explore performance as regards corruption deterrence and public service provision. A modified scheme, where immunity is conditional on reporting, addresses some key objections. We highlight complementarities with other policies aimed at improving accountability and performance of law enforcement agencies, and discuss the relevance for fighting other forms of corruption.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9236.
Date of creation: Nov 2012
Date of revision:
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Other versions of this item:
- Spagnolo, Giancarlo & Dufwenberg, Martin, 2011. "Legalizing Bribes," SITE Working Paper Series 13, Stockholm Institute of Transition Economics, Stockholm School of Economics, revised 06 Apr 2012.
- Martin Dufwenberg & Giancarlo Spagnolo, 2011. "Legalizing Bribes," EIEF Working Papers Series 1117, Einaudi Institute for Economics and Finance (EIEF), revised Dec 2011.
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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- Abbink, Klaus & Dasgupta, Utteeyo & Gangadharan, Lata & Jain, Tarun, 2012. "Letting the briber go free: an experiment on mitigating harassment bribes," MPRA Paper 42176, University Library of Munich, Germany.
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