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Myths and Numbers on Whistleblower Rewards

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  • Nyrerod, Theo
  • Spagnolo, Giancarlo

Abstract

Whistleblower rewards have been used extensively in the US to limit procurement fraud and tax evasion, and their use has been extended to fight financial fraud after the recent financial crisis. There is currently a debate on their possible introduction in Europe, but authorities there appear considerably less enthusiastic than their US counterparts. While it is important that these tools are scrutinized in a lively democratic debate, many things have been written - even by important institutional players - that have no empirical backing or that are in open contrast to the available evidence from independent research. In this paper we review some of the most debated issues regarding the potential benefits and costs of financial incentives for whistleblowers, while trying to separate existing evidence from conjectures with no empirical support, and myths in contrast to available evidence.

Suggested Citation

  • Nyrerod, Theo & Spagnolo, Giancarlo, 2018. "Myths and Numbers on Whistleblower Rewards," CEPR Discussion Papers 12957, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:12957
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    Cited by:

    1. Colignatus, Thomas, 2020. "Forum Theory & A National Assembly of Science and Learning," MPRA Paper 98568, University Library of Munich, Germany, revised 09 Feb 2020.

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    More about this item

    Keywords

    Corruption; Financial incentives; fraud; law enforcement; retaliation; tax evasion; whistleblower protection; Whistleblower rewards;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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