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Bureaucratic Monopoly and the Nature and Timing of Bribes: Evidence from Croatian Data

Author

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  • Rajeev K Goel

    (Department of Economics, Illinois State University, 4200 Economics, Normal, IL 61790-4200, USA)

  • Jelena Budak

    (Institute of Economics, Trg J.F. Kennedy 7, 10000, Zagreb, Croatia)

  • Edo Rajh

    (Institute of Economics, Trg J.F. Kennedy 7, 10000, Zagreb, Croatia)

Abstract

This paper draws on unique insights about the nature of bribe payments to determine the factors driving composition of bribes (whether cash or non-cash) and their timing (whether prepayment or payment at the time of ‘service’). Key questions addressed are: (i) What is the effect of bureaucratic monopoly on cash bribes? and (ii) How does the monopoly power of bureaucrats influence the timing of bribes? Controlling for many ‘standard’ influences driving corruption and comparing the quality and quantity of government, results show that whereas a monopolist bureaucrat is more likely to demand bribes in cash, he/she is less likely to demand their prepayment. Further, while a larger government makes both cash bribes and prepayment more likely, greater economic prosperity makes cash bribes less likely and does not affect their timing.

Suggested Citation

  • Rajeev K Goel & Jelena Budak & Edo Rajh, 2013. "Bureaucratic Monopoly and the Nature and Timing of Bribes: Evidence from Croatian Data," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 55(1), pages 43-58, March.
  • Handle: RePEc:pal:compes:v:55:y:2013:i:1:p:43-58
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    References listed on IDEAS

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    Cited by:

    1. Goel, Rajeev K. & Herrala, Risto & Mazhar, Ummad, 2013. "Institutional quality and environmental pollution: MENA countries versus the rest of the world," Economic Systems, Elsevier, vol. 37(4), pages 508-521.
    2. Rajeev Goel & James Saunoris, 2014. "Global corruption and the shadow economy: spatial aspects," Public Choice, Springer, vol. 161(1), pages 119-139, October.
    3. Rajeev K. Goel & Jelena Budak & Edo Rajh, 2015. "Private sector bribery and effectiveness of anti-corruption policies," Applied Economics Letters, Taylor & Francis Journals, vol. 22(10), pages 759-766, July.
    4. Rajeev K. Goel, 2013. "Initiation of corrupt exchanges and severity of corruption," Financial Theory and Practice, Institute of Public Finance, vol. 37(2), pages 207-222.
    5. repec:liu:liucej:v:15:y:2018:i:1:p:119-164 is not listed on IDEAS
    6. repec:eee:ecosys:v:41:y:2017:i:2:p:236-247 is not listed on IDEAS

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