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Appears in Collections:Economics Working Papers
Peer Review Status: Unrefereed
Title: Corruption Epidemics
Authors: Becker, Sascha
Egger, Peter H
Seidel, Tobias
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Citation: Becker S, Egger PH & Seidel T (2008) Corruption Epidemics. Stirling Economics Discussion Paper, 2008-09.
Keywords: Perceived corruption
Spatial econometrics
JEL Code(s): D72
Issue Date: Jun-2008
Series/Report no.: Stirling Economics Discussion Paper, 2008-09
Abstract: When estimating the determinants of perceived corruption, economists assumed that there is full independence across countries. In the presence of peer-group or learning effects through cross-border economic activity (such as trade or labor migration), this assumption might be violated. We provide evidence that this is the case. Using a cross-section of 123 economies for the year 2000, we illustrate that corruption in one country spills over to adjacent economies. This finding implies that institutional changes reducing corruption in one country lead to smaller but qualitatively similar effects in neighboring countries.
Type: Working or Discussion Paper
Affiliation: Economics
Ifo Institute, Germany
CESifo, Germany

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