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Measuring corruption in presence of reticent respondents: Theory and Application

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  • Bernard GAUTHIER

    (FERDI)

  • Frédéric LESNÉ

    (Transparency International - Initiative Madagascar)

Abstract

We propose an alternative two-step method to correct the bias in corruption indicators associated with the presence of reticent respondents in firm surveys. Our method uses indirect and direct questions on bribery payments. An indirect question is used to identify reticent respondents, which makes it possible to adjust responses to a direct question assessing bribery activities. A simple theoretical model is presented to examine respondent behavior to sensitive questions using direct and indirect formulations. Applying the two-step method to a survey of 382 newly created firms in Madagascar, we find that the frequency of bribery measured by the standard way of measuring corruption activities ignoring reticence is underestimated by 47 percent.

Suggested Citation

  • Bernard GAUTHIER & Frédéric LESNÉ, 2017. "Measuring corruption in presence of reticent respondents: Theory and Application," Working Papers P207, FERDI.
    • Handle: RePEc:fdi:wpaper:4124
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    References listed on IDEAS

    as
    1. George RG Clarke & Klaus S Friesenbichler & Michael Wong, 2015. "Do Indirect Questions Reduce Lying about Corruption? Evidence from a Quasi-Field Experiment," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 57(1), pages 103-135, March.
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    5. Frédéric LESNÉ, 2017. "The same, only different: estimating the magnitude of bribery in business surveys," Working Papers P198, FERDI.
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    13. Bianca Clausen & Aart Kraay & Peter Murrell, 2011. "Does Respondent Reticence Affect the Results of Corruption Surveys? Evidence from the World Bank Enterprise Survey for Nigeria," Chapters, in: Susan Rose-Ackerman & Tina Søreide (ed.), International Handbook on the Economics of Corruption, Volume Two, chapter 15, Edward Elgar Publishing.
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