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Streetlight Effect in Corruption Measurement: Theory and Application to Russian Traffic Police

Author

Listed:
  • Eeckhout, Tom

    (Department of Economics, Ghent University, Belgium)

  • Natkhov, Timur

    (Laboratory for Institutional Analysis, HSE University, Russia)

  • Polishchuk, Leonid

    (Department of Economics, Indiana University, USA)

  • Schoors, Koen

    (Department of Economics, Ghent University, Belgium)

Abstract

Different types and patterns of corruption, which complement each other, are co-monotone, i.e. rise and decline in sync. Therefore, a narrow-based corruption index could serve as a cardinal measure of broader corruption that leaves no direct evidence but complements the observable part. We present a theory that supports such approach to corruption measurement and test it empirically using the case of Russian traffic police. We show that a corruption index that reflects anomalies in the distribution of prestigious license plates exhibits strong correlation with adverse outcomes of the overall corruption in the ranks and activities of traffic police, in accordance with the “corruption kills” dictum.

Suggested Citation

  • Eeckhout, Tom & Natkhov, Timur & Polishchuk, Leonid & Schoors, Koen, 2025. "Streetlight Effect in Corruption Measurement: Theory and Application to Russian Traffic Police," CAEPR Working Papers 2025-004, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    • Handle: RePEc:inu:caeprp:2025004
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    References listed on IDEAS

    as
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    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics

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