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A Big Push to Deter Corruption: Evidence from Italy

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Abstract

During the first half of the 1990s a pool of Italian judges carried out an investigation, named Mani Pulite (literally clean hands), that led many public officials to be prosecuted and convicted because of bribery and embezzlement. The impact of Mani Pulite was so much influential that since then many indicators suggest a steadily decreasing path for corruption in Italy. This paper shows that Mani Pulite was mainly effective in deterring corruption as it broke up the feed due to spending in health and social security as well as infrastructure investments, mainly those related to public buildings, sanitation, and land reclamation.

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Bibliographic Info

Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 159.

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Date of creation: 01 Jun 2006
Date of revision: 01 May 2008
Publication status: Published in Giornale degli Economisti e Annali di Economia, 2008,n. 67(1), pages 75-102.
Handle: RePEc:sef:csefwp:159

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Keywords: Corruption; Public Investment; Deterrence;

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References

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  1. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
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  4. International Monetary Fund, 2000. "Corruption and Military Spending," IMF Working Papers 00/23, International Monetary Fund.
  5. Acemoglu, D. & Verdier, T., 1997. "The Choice between Market Failures and Corruption," DELTA Working Papers 97-06, DELTA (Ecole normale supérieure).
  6. Axel Dreher & Friedrich Schneider, 2006. "Corruption and the Shadow Economy: An Empirical Analysis," KOF Working papers 06-123, KOF Swiss Economic Institute, ETH Zurich.
  7. Mauro, Paolo, 1998. "Corruption and the composition of government expenditure," Journal of Public Economics, Elsevier, vol. 69(2), pages 263-279, June.
  8. Tirole, Jean, 1996. "A Theory of Collective Reputations (with Applications to the Persistence of Corruption and to Firm Quality)," Review of Economic Studies, Wiley Blackwell, vol. 63(1), pages 1-22, January.
  9. Van Rijckeghem, Caroline & Weder, Beatrice, 2001. "Bureaucratic corruption and the rate of temptation: do wages in the civil service affect corruption, and by how much?," Journal of Development Economics, Elsevier, vol. 65(2), pages 307-331, August.
  10. Rauch, James E & Evans, Peter B., 1999. "Bureaucratic Structure and Bureaucratic Performance in Less Developed Countries," University of California at San Diego, Economics Working Paper Series qt0sb0w38d, Department of Economics, UC San Diego.
  11. Toke S. Aidt, 2003. "Economic analysis of corruption: a survey," Economic Journal, Royal Economic Society, vol. 113(491), pages F632-F652, November.
  12. S. Loddo, 2004. "Old and new intervention Policy: a survey of empirical studies for the Mezzogiorno," Working Paper CRENoS 200401, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  13. Miriam A. Golden & Lucio Picci, 2005. "Proposal For A New Measure Of Corruption, Illustrated With Italian Data," Economics and Politics, Wiley Blackwell, vol. 17, pages 37-75, 03.
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Cited by:
  1. Alfano, M. Rosaria & Baraldi, A. Laura & Cantabene, C., 2012. "Political Competition, Electoral System and Corruption: the Italian case," MPRA Paper 41480, University Library of Munich, Germany.
  2. Alfano, Maria Rosaria & Baraldi, Anna Laura & Cantabene, Claudia, 2013. "The role of political competition in the link between electoral systems and corruption: The Italian case," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 1-10.
  3. Alfredo Del Monte, 2010. "The Problem of Southern Italy: From the Lack of Capital to Illegal Intermediation," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, June.
  4. Capuano, Carlo & Purificato, Francesco, 2012. "The macroeconomic impact of organized crime: a neo-Kaleckian perspective," MPRA Paper 40077, University Library of Munich, Germany.

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