Corruption Dynamics: The Golden Goose Effect
Theoretical work on disciplining corrupt agents has emphasized the role of expected future rents?for example, efficiency wages. Yet taken seriously this approach implies that illicit future rents should also deter corruption. We study this "golden goose" effect in the context of a statutory wage increase in India's employment guarantee scheme, comparing official microrecords to original household survey data to measure corruption. We estimate large golden goose effects that reduced the total impact of the wage increase on theft by roughly 64 percent. In short, rent expectations matter
Volume (Year): 5 (2013)
Issue (Month): 4 (November)
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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.:
- Campante, Filipe Robin & Chor, Davin & Do, Quoc-Anh, 2009.
"Instability and the Incentives for Corruption,"
4778510, Harvard Kennedy School of Government.
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