Anatomy of grand corruption: A composite corruption risk index based on objective data
Although both the academic and policy communities have attached great importance to measuring corruption, most of the currently available measures are biased and too broad to test theory or guide policy. This article proposes a new composite indicator of grand corruption based on a wide range of elementary indicators. These indicators are derived from a rich qualitative evidence on public procurement corruption and a statistical analysis of a public procurement data in Hungary. The composite indicator is constructed by linking public procurement process 'red flags' to restrictions of market access. This method utilizes administrative data that is available in practically every developed country and avoids the pitfalls both of perception based indicators and previous 'objective' measures of corruption. It creates an estimation of institutionalised grand corruption that is consistent over time and across countries. The composite indicator is validated using company profitability and political connections data.
|Date of creation:||Jan 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+36-1) 309-2652
Fax: (36-1) 319-3136
Web page: http://econ.core.hu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Coviello, Decio & Gagliarducci, Stefano, 2010. "Building Political Collusion: Evidence from Procurement Auctions," IZA Discussion Papers 4939, Institute for the Study of Labor (IZA).
- Benjamin A. Olken, 2005.
"Monitoring Corruption: Evidence from a Field Experiment in Indonesia,"
NBER Working Papers
11753, National Bureau of Economic Research, Inc.
- Benjamin A. Olken, 2007. "Monitoring Corruption: Evidence from a Field Experiment in Indonesia," Journal of Political Economy, University of Chicago Press, vol. 115, pages 200-249.
- Benjamin Olken, 2005. "Monitoring corruption: Evidence from a field experiment in indonesia," Natural Field Experiments 00317, The Field Experiments Website.
- Di Tella, Rafael & Schargrodsky, Ernesto, 2003. "The Role of Wages and Auditing during a Crackdown on Corruption in the City of Buenos Aires," Journal of Law and Economics, University of Chicago Press, vol. 46(1), pages 269-92, April.
- Oriana Bandiera & Andrea Prat & Tommaso Valletti, 2009.
"Active and Passive Waste in Government Spending: Evidence from a Policy Experiment,"
American Economic Review,
American Economic Association, vol. 99(4), pages 1278-1308, September.
- Andrea Prat & Oriana Bandiera & Tommaso Valletti, 2007. "Active and Passive Waste in Government Spending: Evidence from a Policy Experiment," Levine's Bibliography 843644000000000100, UCLA Department of Economics.
- Bandiera, Oriana & Prat, Andrea & Valletti, Tommaso, 2008. "Active and Passive Waste in Government Spending: Evidence from a Policy Experiment," CEPR Discussion Papers 6799, C.E.P.R. Discussion Papers.
- Oriana Bandiera & Andrea Prat & Tommaso Valletti, 2008. "Active and Passive Waste in Government Spending: Evidence from a Policy Experiment," CEIS Research Paper 115, Tor Vergata University, CEIS, revised 14 Jul 2008.
- Auriol, Emmanuelle & Flochel, Thomas & Straub, Stéphane, 2011.
"Public Procurement and Rent-Seeking: The Case of Paraguay,"
TSE Working Papers
11-224, Toulouse School of Economics (TSE).
- Auriol, Emmanuelle & Flochel, Thomas & Straub, Stéphane, 2011. "Public Procurement and Rent-Seeking: The Case of Paraguay," IDEI Working Papers 661, Institut d'Économie Industrielle (IDEI), Toulouse.
- Auriol, Emmanuelle & Flochel, Thomas & Straub, Stéphane, 2011. "Public Procurement and Rent-Seeking: The Case of Paraguay," CEPR Discussion Papers 8282, C.E.P.R. Discussion Papers.
- Benjamin A. Olken & Rohini Pande, 2011.
"Corruption in Developing Countries,"
NBER Working Papers
17398, National Bureau of Economic Research, Inc.
- Olken, Benjamin A., 2006. "Corruption and the costs of redistribution: Micro evidence from Indonesia," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 853-870, May.
- Kaufmann, Daniel & Vicente, Pedro C., 2005.
8186, University Library of Munich, Germany.
- Denis Audet, 2002. "Government procurement: A synthesis report," OECD Journal on Budgeting, OECD Publishing, vol. 2(3), pages 149-194.
- Staffan Andersson & Paul M. Heywood, 2009. "The Politics of Perception: Use and Abuse of Transparency International's Approach to Measuring Corruption," Political Studies, Political Studies Association, vol. 57, pages 746-767, December.
- Ritva Reinikka & Jakob Svensson, 2004. "Local Capture: Evidence From a Central Government Transfer Program in Uganda," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 678-704, May.
- Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:has:discpr:1403. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adrienn Foldi)
If references are entirely missing, you can add them using this form.