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An Axiomatic Approach to the Measurement of Corruption: Theory and Applications

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  • James E. Foster
  • Andrew W. Horowitz
  • Fabio Méndez

Abstract

No generally accepted framework exists for constructing and evaluating measures of corruption. This article shows how the axiomatic approach of the poverty and inequality literature can be applied to the measurement of corruption. A conceptual framework for organizing corruption data is developed, and three aggregate corruption measures consistent with axiomatic requirements are proposed. The article also provides guidelines for empirical applications of corruption measures and discusses data requirements. A brief empirical example illustrates how each of the measures captures a distinct view of corruption that yields a different ranking. To the authors' knowledge, this article provides the first analysis of corruption measurement using an axiomatic framework. Copyright 2012, Oxford University Press.

Suggested Citation

  • James E. Foster & Andrew W. Horowitz & Fabio Méndez, 2012. "An Axiomatic Approach to the Measurement of Corruption: Theory and Applications," The World Bank Economic Review, World Bank, vol. 26(2), pages 217-235.
    • Handle: RePEc:oup:wbecrv:v:26:y:2012:i:2:p:217-235
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    File URL: http://hdl.handle.net/10.1093/wber/lhs008
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    Citations

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    Cited by:

    1. Banerjee, Panchali & Mukherjee, Vivekananda, 2015. "Does Introduction of Bureaucratic Competition Reduce Corruption in Public Service Delivery?," Working Papers 15/152, National Institute of Public Finance and Policy.
    2. Forson, Joseph Ato, 2014. "A “Recursive Framework” of Corruption and Development: Comparison between Economic and Sustainable outcomes," MPRA Paper 102211, University Library of Munich, Germany, revised 10 Nov 2016.
    3. Gaston Yalonetzky, 2014. "Conditions for the most robust multidimensional poverty comparisons using counting measures and ordinal variables," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(4), pages 773-807, December.
    4. Hao, Yu & Gai, Zhiqiang & Wu, Haitao, 2020. "How do resource misallocation and government corruption affect green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 143(C).
    5. Bukari, Chei & Seth, Suman & Yalonetkzy, Gaston, 2024. "Corruption can cause healthcare deprivation: Evidence from 29 sub-Saharan African countries," World Development, Elsevier, vol. 180(C).
    6. Henrique Oliveira & Vítor Ferreira Moutinho & Oscar Afonso, 2025. "Exploring the Relationship Between Technological Progress, Human Capital, Political Uncertain, Energy Consumption, and Economic Growth: Evidence from a Panel Data Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 13482-13515, September.
    7. Bassetti, Thomas & Dal Maso, Lorenzo & Lattanzi, Nicola, 2015. "Family businesses in Eastern European countries: How informal payments affect exports," Journal of Family Business Strategy, Elsevier, vol. 6(4), pages 219-233.
    8. Jahedi, Salar & Méndez, Fabio, 2014. "On the advantages and disadvantages of subjective measures," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 97-114.
    9. Dávid-Barrett, Elizabeth & Fazekas, Mihály, 2020. "Anti-corruption in aid-funded procurement: Is corruption reduced or merely displaced?," World Development, Elsevier, vol. 132(C).
    10. Gaston Yalonetzky, 2011. "Conditions for the Most Robust Poverty Comparisons Using the Alkire-Foster Family of Measures," OPHI Working Papers ophiwp044b, Queen Elizabeth House, University of Oxford.
    11. Fabio Méndez, 2014. "Can corruption foster regulatory compliance?," Public Choice, Springer, vol. 158(1), pages 189-207, January.
    12. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 491-524, December.
    13. James E. Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster-Greer-Thorbecke (FGT) Poverty Measures: Twenty-Five Years Later," Working Papers 2010-14, The George Washington University, Institute for International Economic Policy.

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