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The influence of government ideology on corruption: the impact of the Great Recession

Author

Listed:
  • Héctor Bellido

    (Universidad de Zaragoza)

  • Lorena Olmos

    (Universidad de Zaragoza)

  • Juan A. Román-Aso

    (Universidad San Jorge)

Abstract

This paper studies the relationship between government ideology and the level of perceived corruption, using a panel data of OECD countries covering the years 1996–2015, and the effect that the Great Recession has exerted on that relationship. We find that, before the onset of the Great Recession, governments formed by one (or more) right-wing parties are perceived as being around 1% more corrupt than those formed by one (or more) left-wing parties. We also find that misuse of public funds under coalitional governments is more likely to be perceived, that the longer the party of the current chief executive has been in office, the higher is the level of perceived corruption, and that minority governments and parties with a greater weight in the legislative chamber are also perceived as being more corrupt. However, the Great Recession has altered these relationships, increasing perceived corruption as the elections come closer, and softening or changing the impact of other political variables on perceived corruption.

Suggested Citation

  • Héctor Bellido & Lorena Olmos & Juan A. Román-Aso, 2021. "The influence of government ideology on corruption: the impact of the Great Recession," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 677-708, July.
  • Handle: RePEc:spr:epolit:v:38:y:2021:i:2:d:10.1007_s40888-020-00212-6
    DOI: 10.1007/s40888-020-00212-6
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    More about this item

    Keywords

    Government ideology; Corruption; Public opinion; Panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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