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Conditional Corruption

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  • Bin Dong
  • Uwe Dulleck
  • Benno Torgler

Abstract

We argue that the decision to bribe bureaucrats depends on the frequency of corruption within a society. We provide a behavioral model to explain this conduct: engaging in corruption results in a disutility of guilt. This implies that people observe a lower probability to be involved in corruption if on average the guilt level of others within a country is higher. We also explore whether - and to what extent - group dynamics or socialization and past experiences affect corruption. In other words, we explore theoretically and empirically whether corruption is contagious and whether conditional cooperation matters. We use the notion of ?conditional corruption? for these effects. The empirical section presents evidence using two data sets at the micro level and a large macro level international panel data set covering almost 20 years. The results indicate that the willingness to engage in corruption is influenced by the perceived activities of peers and other individuals. Moreover, the panel data set at the macro level indicates that the past level of corruption has a strong impact on the current corruption level.

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Paper provided by Center for Research in Economics, Management and the Arts (CREMA) in its series CREMA Working Paper Series with number 2008-29.

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Date of creation: Nov 2008
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Handle: RePEc:cra:wpaper:2008-29

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Keywords: corruption; contagion effect; conditional cooperation; interdependent preferences;

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  1. Links: Prostitution. Small schools. Spain. Corruption.
    by UDADISI in udadisi on 2012-01-17 11:21:00
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Cited by:
  1. Dong, Bin & Torgler, Benno, 2012. "Corruption and social interaction: Evidence from China," Journal of Policy Modeling, Elsevier, Elsevier, vol. 34(6), pages 932-947.
  2. Torgler, Benno & García-Valiñas, María A. & Macintyre, Alison, 2009. "Environmental Participation and Environmental Motivation," Berkeley Olin Program in Law & Economics, Working Paper Series, Berkeley Olin Program in Law & Economics qt5hx0f0c2, Berkeley Olin Program in Law & Economics.
  3. repec:qut:qubewp:wp014 is not listed on IDEAS
  4. Eugen Dimant, 2013. "The Nature of Corruption - An Interdisciplinary Perspective," Working Papers CIE 70, University of Paderborn, CIE Center for International Economics.
  5. Maria Kravtsova & Aleksey Oshchepkov & Christian Welzel, 2014. "Corruption and social values: do postmaterialists justify bribery?," HSE Working papers WP BRP 34/SOC/2014, National Research University Higher School of Economics.
  6. Lee, Wang-Sheng & Guven, Cahit, 2013. "Engaging in corruption: The influence of cultural values and contagion effects at the microlevel," Journal of Economic Psychology, Elsevier, Elsevier, vol. 39(C), pages 287-300.
  7. Bobkova, Nina & Egbert, Henrik, 2012. "Corruption investigated in the lab: a survey of the experimental literature," MPRA Paper 38163, University Library of Munich, Germany.
  8. Simplice A, Asongu, 2012. "Fighting corruption when existing corruption-control levels count : what do wealth-effects tell us in Africa?," MPRA Paper 42180, University Library of Munich, Germany.
  9. Van-Ha Le & Jakob de Haan & Erik Dietzenbacher, 2013. "Do Higher Government Wages Reduce Corruption? Evidence Based on a Novel Dataset," CESifo Working Paper Series 4254, CESifo Group Munich.
  10. Niklas Potrafke, 2014. "The Evidence on Globalization," CESifo Working Paper Series 4708, CESifo Group Munich.

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