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Corruption clubs: empirical evidence from kernel density estimates

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  • Thomas Herzfeld
  • Christoph Weiss

Abstract

A common finding of many analytical models is the existence of multiple equilibria of corruption. Countries characterized by the same economic, social and cultural background do not necessarily experience the same levels of corruption. In this article, we use Kernel Density Estimation techniques to analyse the cross-country distribution of corruption. Particular emphasis will be given to the question whether the distribution of corruption shows more than one peak. We find that most of the estimated densities exhibit twin peaks. We also provide some evidence on the intra-distribution dynamics and the persistence of corruption. We find the group of countries classified within the two 'clubs' to be very stable. Corruption is a highly persistent phenomenon. Substantial changes in the economic, political and cultural environment of countries within the 'corruption club' are required before a significant decline of corruption is to be expected.

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  • Thomas Herzfeld & Christoph Weiss, 2007. "Corruption clubs: empirical evidence from kernel density estimates," Applied Economics, Taylor & Francis Journals, vol. 39(12), pages 1565-1572.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1565-1572
    DOI: 10.1080/00036840500461980
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    Cited by:

    1. Bienvenido Ortega & Antonio Casquero & Jesús Sanjuán, 2016. "Corruption and Convergence in Human Development: Evidence from 69 Countries During 1990–2012," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 691-719, June.
    2. Khalid Sekkat, 2022. "Have you been served, your honor? Yes, thank you, your excellency: the judiciary and political corruption," Constitutional Political Economy, Springer, vol. 33(3), pages 326-353, September.

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    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • H10 - Public Economics - - Structure and Scope of Government - - - General

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