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Convicting Corrupt Officials: Evidence from Randomly Assigned Cases

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  • Axbard, Sebastian

Abstract

Can the judiciary help root out government corruption? This paper exploits the random assignment of court cases to justices who exhibit varying degrees of strictness to examine how convicting corrupt officials affects local government outcomes in the Philippines. I document that convictions improve the management of local public finances and reduce associated corruption. An exploration of mechanisms suggests that legal deterrence effects contribute to these findings. The results further indicate that convictions are effective at stifling corruption among bureaucrats, but not politicians. Consistent with this heterogeneity, convictions reduce electoral competition and consequently weaken accountability for incumbent politicians.

Suggested Citation

  • Axbard, Sebastian, 2025. "Convicting Corrupt Officials: Evidence from Randomly Assigned Cases," CEPR Discussion Papers 20413, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20413
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    File URL: https://cepr.org/publications/DP20413
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    Keywords

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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
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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