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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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Bibliographic Info

Paper provided by School of Economics and Finance, Queensland University of Technology in its series School of Economics and Finance Discussion Papers and Working Papers Series with number 241.

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Date of creation: 27 Jan 2009
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Handle: RePEc:qut:dpaper:241

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

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References

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  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. Bin Dong & Benno Torgler, 2010. "Corruption and Social Interaction: Evidence from China," School of Economics and Finance Discussion Papers and Working Papers Series 261, School of Economics and Finance, Queensland University of Technology.
  2. Benno Torgler & Maria A. Garcia-Valinas & Alison Macintyre, 2008. "Environmental Participation and Environmental Motivation," School of Economics and Finance Discussion Papers and Working Papers Series 238, School of Economics and Finance, Queensland University of Technology.
  3. 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.
  4. 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, vol. 39(C), pages 287-300.
  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. Bobkova, Nina & Egbert, Henrik, 2012. "Corruption investigated in the lab: a survey of the experimental literature," MPRA Paper 38163, University Library of Munich, Germany.
  7. repec:pdn:ciepap:79 is not listed on IDEAS
  8. repec:qut:qubewp:wp014 is not listed on IDEAS
  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. repec:pdn:ciepap:70 is not listed on IDEAS
  11. Niklas Potrafke, 2014. "The Evidence on Globalization," CESifo Working Paper Series 4708, CESifo Group Munich.
  12. Dimant, Eugen, 2013. "The nature of corruption: An interdisciplinary perspective," Economics Discussion Papers 2013-59, Kiel Institute for the World Economy.

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