Svensson, Jakob () (Institute for International Economic Studies, Stockholm University)
Abstract
This paper uses an unique data set on corruption containing quantitative information on estimated bribe payments of Ugandan firms. The data has two striking features; not all firms report they need to pay bribes; and, there is a considerable variation in reported graft across firms facing similar institutions/policies. To explain these patterns we construct a simple bargaining model. The model yields predictions on both the incidence and the level of graft. Consistent with the model we find that variation in policies/regulations (across industries) explain the incidence of corruption, while variation in profitability and technology choice explain the variation in bribes for the group of bribe paying firms. These findings suggest that public officials act as price (bribe) discriminators, and that prices of public services are endogenously determined in order to extract bribes.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Stockholm University, Institute for International Economic Studies in its series Seminar Papers with number
713.
Length: 35 pages Date of creation: 24 May 2002 Date of revision: Publication status: Forthcoming in Quarterly Journal of Economics, 2003. Handle: RePEc:hhs:iiessp:0713
Contact details of provider: Postal: Institute for International Economic Studies, Stockholm University, S-106 91 Stockholm, Sweden Phone: +46-8-162000 Fax: +46-8-161443 Web page: http://www.iies.su.se/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Jinfeng Ge) or (Ettore Panetti) or (David Seim).
Find related papers by JEL classification: C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General D00 - Microeconomics - - General - - - General
This paper has been announced in the following NEP Reports: