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How to Subvert Democracy: Montesinos in Peru

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Author Info
McMillan, John (Stanford U)
Zoido, Pablo
Abstract

Which of the democratic checks and balances—opposition parties, the judiciary, a free press—is the most critical? Peru has the full set of democratic institutions. In the 1990s, the secret-police chief Montesinos systematically undermined them all with bribes. We quantify the checks using the bribe prices. Montesinos paid television-channel owners about 100 times what he paid judges and politicians. One single television channel’s bribe was four times larger than the total of the opposition politicians’ bribes. By revealed preference, the strongest check on the government’s power was the news media.

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Paper provided by Stanford University, Graduate School of Business in its series Research Papers with number 1851r.

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Date of creation: Mar 2004
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Handle: RePEc:ecl:stabus:1851r

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  1. Egorov, Georgy & Guriev, Sergei & Sonin, Konstantin, 2006. "Media Freedom, Bureaucratic Incentives and the Resource Curse," CEPR Discussion Papers 5748, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Hunt, Jennifer & Laszlo, Sonia, 2005. "Bribery: Who Pays, Who Refuses, What are the Payoffs?," CEPR Discussion Papers 5251, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. John Duggan & Cesar Martinelli, 2008. "The Role of Media Slant in Elections and Economics," Working Papers 0802, Centro de Investigacion Economica, ITAM. [Downloadable!]
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  4. Drosdowski, Thomas, 2006. "On the Link Between Democracy and Environment," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover dp-355, Universität Hannover, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
  5. Eduardo Morón & Cynthia Sanborn, 2006. "Los escollos del diseño de políticas en Perú: actores, instituciones y las reglas del juego," RES Working Papers 3203, Inter-American Development Bank, Research Department. [Downloadable!]
  6. Jennifer Hunt, 2005. "Why Are Some Public Officials more Corrupt Than Others?," NBER Working Papers 11595, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Barron, Patrick & Olken, Benjamin, 2007. "The Simple Economics of Extortion: Evidence from Trucking in Aceh," CEPR Discussion Papers 6332, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Thomas Barnebeck Andersen & Jeanet Bentzen & Carl-Johan Dalgaard & Pablo Selaya, 2008. "On the Impact of Digital Technologies on Corruption: Evidence from U.S. States and Across Countries," Discussion Papers 08-11, University of Copenhagen. Department of Economics. [Downloadable!]
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  10. Francisco Alvarez-Cuadrado, 2006. "A Quantitative Exploration Of The Golden Age Of European Growth: Structural Change, Public Investment, The Marshall Plan And Intra-European Trade," Departmental Working Papers 2005-01, McGill University, Department of Economics. [Downloadable!]
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  12. Henk C. Kranendonk & Jan Bonenkamp & Johan P. Verbruggen, 2004. "A Leading Indicator for the Dutch Economy – Methodological and Empirical Revision of the CPB System," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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  14. Timothy Besley & Andrea Prat, 2006. "Handcuffs for the Grabbing Hand? Media Capture and Government Accountability," American Economic Review, American Economic Association, vol. 96(3), pages 720-736, June. [Downloadable!]
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  15. Peter T. Leeson & Russell S. Sobel, 2006. "Weathering Corruption," Working Papers 06-07, Department of Economics, West Virginia University. [Downloadable!]
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  18. Javier Herrera & Mireille Razafindrakoto & François Roubaud, 2005. "Governance, Democracy and Poverty Reduction: Lessons drawn from household surveys in sub-Saharan Africa and Latin America," Working Papers DT/2005/12, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
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