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Does Transparency Reduce Corruption ?

Author

Listed:
  • Octavian Strimbu
  • Patrick Gonzalez

Abstract

Does a better monitoring (transparency) of officials lowers the incidence of corruption ? Using a common agency game with imperfect information, we show that the answer depends on the measure of corruption that one uses. More transparency lowers the prevalence of corruption but it may raise the average bribe as it motivates the corruptor to bid more aggressively for the agent’s favour. We show that transparency affects the prevalence of corruption at the margin through a competitive effect and an efficiency effect.

Suggested Citation

  • Octavian Strimbu & Patrick Gonzalez, 2013. "Does Transparency Reduce Corruption ?," Cahiers de recherche CREATE 2013-5, CREATE.
  • Handle: RePEc:lvl:creacr:2013-5
    as

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    File URL: https://www.create.ulaval.ca/sites/create.ulaval.ca/files/Publications/create2013-5.pdf
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    References listed on IDEAS

    as
    1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    2. Mookherjee, Dilip & Png, I P L, 1995. "Corruptible Law Enforcers: How Should They Be Compensated?," Economic Journal, Royal Economic Society, vol. 105(428), pages 145-159, January.
    3. Toke S. Aidt, 2003. "Economic analysis of corruption: a survey," Economic Journal, Royal Economic Society, vol. 113(491), pages 632-652, November.
    4. Le Breton, Michel & Salanie, Francois, 2003. "Lobbying under political uncertainty," Journal of Public Economics, Elsevier, vol. 87(12), pages 2589-2610, December.
    5. Harstad, Bård & Svensson, Jakob, 2011. "Bribes, Lobbying, and Development," American Political Science Review, Cambridge University Press, vol. 105(01), pages 46-63, February.
    6. Tirole, Jean, 1986. "Hierarchies and Bureaucracies: On the Role of Collusion in Organizations," Journal of Law, Economics, and Organization, Oxford University Press, vol. 2(2), pages 181-214, Fall.
    7. David Martimort & Aggey Semenov, 2007. "Political Biases in Lobbying under Asymmetric Information," Journal of the European Economic Association, MIT Press, vol. 5(2-3), pages 614-623, 04-05.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Corruption; Transparency; Common Agency;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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