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Appears in Collections:Economics Working Papers
Peer Review Status: Unrefereed
Title: Corruption Epidemics
Author(s): 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
Political corruption Economic aspects
Corruption Economic aspects
JEL Code(s): D72: Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
D73: Bureaucracy; Administrative Processes in Public Organizations; Corruption
K42: Illegal Behavior and the Enforcement of Law
Issue Date: 1-Jun-2008
Date Deposited: 31-Oct-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 Paper
Affiliation: Economics
Ifo Institute, Germany
CESifo, Germany

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