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How Corruption Hits People When They Are Down

  • Jennifer Hunt

    ()

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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File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp836.pdf
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Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp836.

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Length: pages
Date of creation: 01 Aug 2006
Date of revision:
Handle: RePEc:wdi:papers:2006-836
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  1. Jennifer Hunt, 2006. "How Corruption Hits People When They Are Down," Departmental Working Papers 2006-07, McGill University, Department of Economics.
  2. 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).
  3. Shang-Jin Wei, 1997. "How Taxing is Corruption on International Investors?," NBER Working Papers 6030, National Bureau of Economic Research, Inc.
  4. 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.
  5. 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.
  6. Jennifer Hunt & Sonia Laszlo, 2005. "Bribery: Who Pays, Who Refuses, What Are the Payoffs?," NBER Working Papers 11635, National Bureau of Economic Research, Inc.
  7. Marianne Bertrand & Simeon Djankov & Rema Hanna & Sendhil Mullainathan, 2006. "Does Corruption Produce Unsafe Drivers?," NBER Working Papers 12274, National Bureau of Economic Research, Inc.
  8. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
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