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On the Cultural Transmission of Corruption

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Author Info
Hauk, Esther () (Universitat Pompeu Fabra)
Sáez-Martí, María () (The Research Institute of Industrial Economics)

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Abstract

We provide a cultural explanation to the phenomenon of corruption in the framework of an overlapping generations model with intergenerational transmission of values. We show that the economy has two steady states with different levels of corruption. The driving force in the equilibrium selection process is the education effort exerted by parents which depends on the distribution of ethics in the population and on expectations about future policies. We propose some policy interventions which via parents' efforts have long-lasting effects on corruption and show the success of intensive education campaigns. Educating the young is a key element in reducing corruption successfully

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Publisher Info
Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 564.

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Length: 25 pages
Date of creation: 03 Oct 2001
Date of revision:
Publication status: Forthcoming in Journal of Economic Theory.
Handle: RePEc:hhs:iuiwop:0564

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Related research
Keywords: Corruption; Cultural Transmission; Education; Ethics;

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Find related papers by JEL classification:
D10 - Microeconomics - - Household Behavior - - - General
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Cadot, Olivier, 1987. "Corruption as a gamble," Journal of Public Economics, Elsevier, vol. 33(2), pages 223-244, July. [Downloadable!] (restricted)
  2. Lui, Francis T., 1986. "A dynamic model of corruption deterrence," Journal of Public Economics, Elsevier, vol. 31(2), pages 215-236, November. [Downloadable!] (restricted)
  3. Andvig, Jens Chr. & Moene, Karl Ove, 1990. "How corruption may corrupt," Journal of Economic Behavior & Organization, Elsevier, vol. 13(1), pages 63-76, January. [Downloadable!] (restricted)
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  4. Laffont, Jean-Jacques & N'Guessan, Tchetche, 1999. "Competition and corruption in an agency relationship," Journal of Development Economics, Elsevier, vol. 60(2), pages 271-295, December. [Downloadable!] (restricted)
  5. Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April. [Downloadable!] (restricted)
    Other versions:
  6. Becker, Gary S, 1981. "Altruism in the Family and Selfishness in the Market Place," Economica, London School of Economics and Political Science, vol. 48(189), pages 1-15, February.
  7. Sah, R.K., 1988. "Persistence And Pervasiveness Of Corruption: New Perspectives," Papers 560, Yale - Economic Growth Center.
  8. Becker, Gary S, 1976. "Altruism, Egoism, and Genetic Fitness: Economics and Sociobiology," Journal of Economic Literature, American Economic Association, vol. 14(3), pages 817-26, September. [Downloadable!] (restricted)
  9. Akerlof, George A, 1983. "Loyalty Filters," American Economic Review, American Economic Association, vol. 73(1), pages 54-63, March.
  10. Tirole, Jean, 1996. "A Theory of Collective Reputations (with Applications to the Persistence of Corruption and to Firm Quality)," Review of Economic Studies, Blackwell Publishing, vol. 63(1), pages 1-22, January. [Downloadable!] (restricted)
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  11. Becker, Gary S, 1977. "Altruism, Egoism, and Genetic Fitness: Economics and Sociobiology: Reply," Journal of Economic Literature, American Economic Association, vol. 15(2), pages 506-07, June. [Downloadable!] (restricted)
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This page was last updated on 2009-11-21.

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