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How Groups Diversity and Power Intensity of Leaders may Affect Corruption of Public Resource in Communities: Insights from Laboratory Experiment

Author

Listed:
  • Deden Dinar Iskandar

    () (Diponegoro University)

  • Firmansyah Firmansyah

    () (Diponegoro University)

Abstract

This laboratory experimental study aims to examine the effect of groups diversity and power intensity of leaders on corruption of public resource in communities. In particular, this study observes the interaction effect of those two factors on the corruption, which is still rare in the existing literature. The findings of this study provide the insights that all leaders with power tend to corrupt, but leaders with unrestricted power in diverse groups corrupt the most. The results of post-experiment survey suggest possible rationales for this phenomenon. This study may offer alternatives to curb the practices of power abuse by the local leaders, thus mitigating the incidences of corruption.

Suggested Citation

  • Deden Dinar Iskandar & Firmansyah Firmansyah, 2019. "How Groups Diversity and Power Intensity of Leaders may Affect Corruption of Public Resource in Communities: Insights from Laboratory Experiment," Economics Bulletin, AccessEcon, vol. 39(4), pages 2566-2571.
  • Handle: RePEc:ebl:ecbull:eb-19-00016
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I4-P239.pdf
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    References listed on IDEAS

    as
    1. Vivi Alatas & Abhijit Banerjee & Rema Hanna & Benjamin A. Olken & Ririn Purnamasari & Matthew Wai-Poi, 2019. "Does Elite Capture Matter? Local Elites and Targeted Welfare Programs in Indonesia," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 334-339, May.
    2. Dincer, Oguzhan C., 2008. "Ethnic and religious diversity and corruption," Economics Letters, Elsevier, vol. 99(1), pages 98-102, April.
    3. Nasr G. Elbahnasawy & Charles F. Revier, 2012. "The Determinants of Corruption: Cross-Country-Panel-Data Analysis," The Developing Economies, Institute of Developing Economies, vol. 50(4), pages 311-333, December.
    4. Katherine Casey & Rachel Glennerster & Edward Miguel, 2014. "Healing the Wounds: Learning from Sierra Leone's Postwar Institutional Reforms," NBER Chapters, in: African Successes, Volume I: Government and Institutions, pages 15-32, National Bureau of Economic Research, Inc.
    5. Pablo Guillen & Robert F.Veszteg, 2006. "Subject Pool Bias in Economics Experiments," ThE Papers 06/03, Department of Economic Theory and Economic History of the University of Granada..
    6. Danila Serra, 2006. "Empirical determinants of corruption: A sensitivity analysis," Public Choice, Springer, vol. 126(1), pages 225-256, January.
    7. Fritzen, Scott A., 2007. "Can the Design of Community-Driven Development Reduce the Risk of Elite Capture? Evidence from Indonesia," World Development, Elsevier, vol. 35(8), pages 1359-1375, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    corruption; diversity; economic behavior; laboratory experiment; public goods; power;

    JEL classification:

    • H8 - Public Economics - - Miscellaneous Issues
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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