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Bribing to Circumvent Capture and Facilitate Participation in Social Programs: Evidence from Indian Villages

  • Raghbendra Jha
  • Hari K. Nagarajan
  • Kailash C. Pradhan

Given that the phenomenon of capture of public programs by sections the population is rampant in developing countries, households can indulge in a strategy to improve their odds of participating in public programs by bribing the suppliers of such programs. This is an important issue affecting both the supply of local public goods and the incidence of corruption. To the best of our knowledge there is no analysis of the impact of bribery on the odds of participating in a local public goods program, anywhere. Using a unique data set for rural India this paper addresses the question of whether households bribe elected officials responsible for assuring such supply to improve their access to local public goods. We find considerable evidence of such bribing. We also model the welfare effects of such bribing on groups of households as well as the impact of bribery on aggregate welfare. Several policy conclusions are advanced.

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File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2011/WP2011_13.pdf
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Paper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2011-13.

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Length: 23
Date of creation: 2011
Date of revision:
Handle: RePEc:pas:asarcc:2011-13
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  1. Abhijit Banerjee & Kaivan Munshi, 2004. "How Efficiently is Capital Allocated? Evidence from the Knitted GarmentIndustry in Tirupur," Review of Economic Studies, Wiley Blackwell, vol. 71(1), pages 19-42, 01.
  2. Alberto Alesina & Stephen E. Spear, 1987. "An Overlapping Generations Model of Electoral Competition," NBER Working Papers 2354, National Bureau of Economic Research, Inc.
  3. Pasquale Scandizzo & Raghav Gaiha & Katsushi Imai, 2009. "Does the employment guarantee scheme stabilize household incomes in rural India?," Applied Economics Letters, Taylor & Francis Journals, vol. 16(12), pages 1221-1225.
  4. Raghbendra Jha & Sambit Bhattacharyya & Raghav Gaiha, 2011. "Temporal variation of capture of anti-poverty programs: rural public works and food for work programs in rural India," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(3), pages 349-362.
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