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How Corruption Hits People When They Are Down

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Author Info
Jennifer Hunt ()

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Abstract

Using cross–country and Peruvian data, I show that victims of misfortune, particularly crime victims, are much more likely than non–victims to bribe public officials. Misfortune increases victims’ demand for public services, raising bribery indirectly, and also increases victims’ propensity to bribe certain officials conditional on using them, possibly because victims are desperate, vulnerable, or demanding services particularly prone to corruption. The effect is strongest for bribery of the police, where the increase in bribery comes principally through increased use of the police. For the judiciary the effect is also strong, and for some misfortunes is composed equally of an increase in use and an increase in bribery conditional on use. The expense and disutility of bribing thus compound the misery brought by misfortune.

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Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number wp836.

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Date of creation: 01 Aug 2006
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Handle: RePEc:wdi:papers:2006-836

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Related research
Keywords: Corruption; bribery; governance;

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Find related papers by JEL classification:
H1 - Public Economics - - Structure and Scope of Government
K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
O1 - Economic Development, Technological Change, and Growth - - Economic Development

This paper has been announced in the following NEP Reports:

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. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  2. Robin Thompson & Ana Xavier, 2002. "Unofficial Payments for Acute State Hospital Care In Kazakhstan. A Model of Physician Behaviour with Price Discrimination and Vertical Service Differentiation," LICOS Discussion Papers 12402, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
    Other versions:
  3. Jennifer Hunt & Sonia Laszlo, 2005. "Bribery: Who Pays, Who Refuses, What Are The Payoffs?," William Davidson Institute Working Papers Series wp792, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  4. Jennifer Hunt, 2004. "Trust and Bribery: The Role of the Quid Pro Quo and the Link with Crime," NBER Working Papers 10510, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Deininger, Klaus & Mpuga, Paul, 2005. "Does Greater Accountability Improve the Quality of Public Service Delivery? Evidence from Uganda," World Development, Elsevier, vol. 33(1), pages 171-191, January. [Downloadable!] (restricted)
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Cited by:
(explanations, 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. Pande, Rohini, 2007. "Understanding Political Corruption in Low Income Countries," Working Paper Series rwp07-020, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  2. Ishita Chatterjee & Ranjan Ray, 2009. "Crime, Corruption and Institutions," Monash Economics Working Papers 20/09, Monash University, Department of Economics. [Downloadable!]
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