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How Corruption Hits People When They Are Down

  • Hunt, Jennifer

    ()

    (Rutgers University)

Using cross-country and Peruvian data, I show that victims of misfortune, particularly crime victims, are much more likely than non-victims to bribe public officials. Misfortune increases victims’ demand for public services, raising bribery indirectly, and also increases victims’ propensity to bribe certain officials conditional on using them, possibly because victims are desperate, vulnerable, or demanding services particularly prone to corruption. The effect is strongest for bribery of the police, where the increase in bribery comes principally through increased use of the police. For the judiciary the effect is also strong, and for some misfortunes is composed equally of an increase in use and an increase in bribery conditional on use. The expense and disutility of bribing thus compound the misery brought by misfortune.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2278.

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Length: 40 pages
Date of creation: Aug 2006
Date of revision:
Publication status: published in: Journal of Development Economics, 2007, 84 (2), 574-589
Handle: RePEc:iza:izadps:dp2278
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  1. Hunt, Jennifer, 2007. "How corruption hits people when they are down," Journal of Development Economics, Elsevier, vol. 84(2), pages 574-589, November.
  2. Shang-Jin Wei, 1997. "How Taxing is Corruption on International Investors?," William Davidson Institute Working Papers Series 63, William Davidson Institute at the University of Michigan.
  3. Hunt, Jennifer & Laszlo, Sonia, 2005. "Bribery: Who Pays, Who Refuses, What are the Payoffs?," CEPR Discussion Papers 5251, C.E.P.R. Discussion Papers.
  4. Hunt, Jennifer, 2004. "Trust and Bribery: The Role of the Quid Pro Quo and the Link with Crime," IZA Discussion Papers 1179, Institute for the Study of Labor (IZA).
  5. Marianne Bertrand & Simeon Djankov & Rema Hanna & Sendhil Mullainathan, 2006. "Does Corruption Produce Unsafe Drivers?," NBER Working Papers 12274, National Bureau of Economic Research, Inc.
  6. Roubaud, François & Razafindrakoto, Mireille & Herrera, Javier, . "Gouvernance, démocratie et lutte contre la pauvreté : enseignements tirés des enquêtes auprès des ménages en Afrique sub-saharienne et en Amérique latine," Economics Papers from University Paris Dauphine 123456789/4394, Paris Dauphine University.
  7. Xavier, Ana & Robin Thompson, 2003. "Unofficial payments for acute state hospital care in Kazakhstan. A model of physician behaviour with price discrimination and vertical service differentiation," Royal Economic Society Annual Conference 2003 224, Royal Economic Society.
  8. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
  9. Deininger, Klaus & Mpuga, Paul, 2005. "Does Greater Accountability Improve the Quality of Public Service Delivery? Evidence from Uganda," World Development, Elsevier, vol. 33(1), pages 171-191, January.
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