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On the economic incentives for taking bribes

  • Rajeev Goel
  • Daniel Rich

This paper presents an empirical analysis of the factors affecting bribe taking by public officials. Factors influencing the acceptance of bribes include: the probability of being convicted, severity of punishment, government salary relative to private sector income, the demonstration effect, and the unemployment rate. Our results indicate that higher probability of being convicted discourages the acceptance of bribes as does more severe punishment. Low relative earnings, high unemployment, and the demonstration effect of aggregate advertising all lead to increased bribe taking. Copyright Kluwer Academic Publishers 1989

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File URL: http://hdl.handle.net/10.1007/BF00123889
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Article provided by Springer in its journal Public Choice.

Volume (Year): 61 (1989)
Issue (Month): 3 (June)
Pages: 269-275

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Handle: RePEc:kap:pubcho:v:61:y:1989:i:3:p:269-275
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  1. Stigler, George J, 1970. "The Optimum Enforcement of Laws," Journal of Political Economy, University of Chicago Press, vol. 78(3), pages 526-36, May-June.
  2. Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
  3. Goldberg, Itzhak & Nold, Frederick C, 1980. "Does Reporting Deter Burglars?-An Empirical Analysis of Risk and Return in Crime," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 424-31, August.
  4. Witte, Ann Dryden, 1980. "Estimating the Economic Model of Crime with Individual Data," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 57-84, February.
  5. Edward E. Leamer, 1982. "Let's Take the Con Out of Econometrics," UCLA Economics Working Papers 239, UCLA Department of Economics.
  6. Hillman, Arye L. & Katz, Eliakim, 1987. "Hierarchical structure and the social costs of bribes and transfers," Journal of Public Economics, Elsevier, vol. 34(2), pages 129-142, November.
  7. Tollison, Robert D, 1982. "Rent Seeking: A Survey," Kyklos, Wiley Blackwell, vol. 35(4), pages 575-602.
  8. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  9. Elie Appelbaum & Eliakim Katz, 1996. "Transfer seeking and avoidance: On the full social costs of rent seeking," Working Papers 1996_11, York University, Department of Economics.
  10. Lui, Francis T., 1986. "A dynamic model of corruption deterrence," Journal of Public Economics, Elsevier, vol. 31(2), pages 215-236, November.
  11. Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-81, August.
  12. Richard Allard, 1988. "Rent-seeking with non-identical players," Public Choice, Springer, vol. 57(1), pages 3-14, April.
  13. Appelbaum, Elie & Katz, Eliakim, 1987. "Seeking Rents by Setting Rents: The Political Economy of Rent Seeking," Economic Journal, Royal Economic Society, vol. 97(387), pages 685-99, September.
  14. Cadot, Olivier, 1987. "Corruption as a gamble," Journal of Public Economics, Elsevier, vol. 33(2), pages 223-244, July.
  15. Davis, Michael L, 1988. "Time and Punishment: An Intertemporal Model of Crime," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 383-90, April.
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