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A Policy-Oriented Theory of Corruption

Author

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  • Nas, Tevfik F.
  • Price, Albert C.
  • Weber, Charles T.

Abstract

Perspectives from political science and economics are drawn on to suggest an integrated theory of governmental corruption. The theory is oriented toward policy choices, and corruption is viewed as a product of individual and structural variables that interact to produce both positive and negative consequences. Individual-level considerations such as greed and the likelihood of detection and prosecution suggest one set of policies for reducing corruption. Bureaucratic constraints, citizen participation, and the congruence of legal structures and social demands offer a competing set of concerns that must be dealt with in analyzing corrupt practices. We show that corruption, as a process, influences the optimal level of social welfare. Alternative conceptions are examined, and a model is developed to evaluate policy choices related to corruption from the perspective of welfare optimization. Applied to the analysis of corruption, the model integrates general equilibrium theory, deterrence theory, and structural conditions. Finally, policy implications are considered.

Suggested Citation

  • Nas, Tevfik F. & Price, Albert C. & Weber, Charles T., 1986. "A Policy-Oriented Theory of Corruption," American Political Science Review, Cambridge University Press, vol. 80(1), pages 107-119, March.
    • Handle: RePEc:cup:apsrev:v:80:y:1986:i:01:p:107-119_18
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    1. repec:pdn:wpaper:70 is not listed on IDEAS
    2. Daniel Lederman & Norman V. Loayza & Rodrigo R. Soares, 2005. "Accountability And Corruption: Political Institutions Matter," Economics and Politics, Wiley Blackwell, vol. 17(1), pages 1-35, March.
    3. Eugen Dimant & Guglielmo Tosato, 2018. "Causes And Effects Of Corruption: What Has Past Decade'S Empirical Research Taught Us? A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 335-356, April.
    4. Gouda Moamen & Park Sang-Min, 2015. "Religious Loyalty and Acceptance of Corruption," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(2), pages 184-206, April.
    5. Carolyn M. Warner, 2002. "Creating a Common Market for Fraud and Corruption in the European Union: an Institutional Accident, or a Deliberate Strategy?," EUI-RSCAS Working Papers 31, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    6. Yang, David Da-hua, 2005. "Corruption by monopoly: Bribery in Chinese enterprise licensing as a repeated bargaining game," China Economic Review, Elsevier, vol. 16(2), pages 171-188.
    7. Mun, Har Wai & Hook, Law Siong & Niaz Ahmad, Mohd Naseem & Mazlan, Nur Syazwani, 2022. "Does Recomposed Institutions Quality Alleviate Extreme Income Inequality?," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(2), pages 1-16.
    8. Khan, Anupriya & Krishnan, Satish, 2019. "Conceptualizing the impact of corruption in national institutions and national stakeholder service systems on e-government maturity," International Journal of Information Management, Elsevier, vol. 46(C), pages 23-36.
    9. Jean Cartier-Bresson, 1992. "Éléments d'analyse pour une économie de la corruption," Revue Tiers Monde, Programme National Persée, vol. 33(131), pages 581-609.
    10. Davis, Jennifer, 2004. "Corruption in Public Service Delivery: Experience from South Asia's Water and Sanitation Sector," World Development, Elsevier, vol. 32(1), pages 53-71, January.
    11. Cameron, Lisa & Chaudhuri, Ananish & Erkal, Nisvan & Gangadharan, Lata, 2009. "Propensities to engage in and punish corrupt behavior: Experimental evidence from Australia, India, Indonesia and Singapore," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 843-851, August.
    12. L. Cameron & A. Chaudhuri & N. Erkal & L. Gangadharan, 2005. "Do Attitudes Towards Corruption Differ Across Cultures? Experimental Evidence from Australia, India, Indonesia andSingapore," Department of Economics - Working Papers Series 943, The University of Melbourne.

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