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Corruption, food subsidies, and opacity: Evidence from the Philippines

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  • Mehta, Aashish
  • Jha, Shikha

Abstract

We argue that subsidized food distribution systems that fail to publicize how much food has been allocated to each local market will experience high rates of theft on the margin as they are expanded. We provide the first comparable cross-section of estimates of subsidized food theft. As predicted, in regions of the Philippines that were allocated more subsidized rice to distribute, a larger percentage of the rice went missing.

Suggested Citation

  • Mehta, Aashish & Jha, Shikha, 2012. "Corruption, food subsidies, and opacity: Evidence from the Philippines," Economics Letters, Elsevier, vol. 117(3), pages 708-711.
  • Handle: RePEc:eee:ecolet:v:117:y:2012:i:3:p:708-711
    DOI: 10.1016/j.econlet.2012.07.023
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    References listed on IDEAS

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    1. Reetika Khera, 2011. "Trends in Diversion of PDS Grain," Working Papers id:3793, eSocialSciences.
    2. Jha, Skikha & Ramaswami, Bharat, 2012. "The Percolation of Public Expenditure: Food Subsidies and the Poor in India and the Philippines," India Policy Forum, National Council of Applied Economic Research, vol. 8(1), pages 95-138.
    3. Olken, Benjamin A., 2006. "Corruption and the costs of redistribution: Micro evidence from Indonesia," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 853-870, May.
    4. Ritva Reinikka & Jakob Svensson, 2004. "Local Capture: Evidence from a Central Government Transfer Program in Uganda," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 679-705.
    5. Timmer, C. Peter, 2010. "Reflections on food crises past," Food Policy, Elsevier, vol. 35(1), pages 1-11, February.
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    Cited by:

    1. Zouhaier Aloui & Samir Maktouf, 2024. "The Impact of Foreign Direct Investment and Political Stability on Food Security: Evidence from Sub-Saharan African Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(2), pages 289-328, June.
    2. Krisztina Kis-Katos & Günther G. Schulze, 2013. "Corruption in Southeast Asia: a survey of recent research," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(1), pages 79-109, May.
    3. Ogunniyi, Adebayo Isaiah & Mavrotas, George & Olagunju, Kehinde Oluseyi & Fadare, Olusegun & Adedoyin, Rufai, 2020. "Governance quality, remittances and their implications for food and nutrition security in Sub-Saharan Africa," World Development, Elsevier, vol. 127(C).
    4. Mehta, Aashish & Jha, Shikha & Quising, Pilipinas, 2013. "Self-targeted food subsidies and voice: Evidence from the Philippines," Food Policy, Elsevier, vol. 41(C), pages 204-217.
    5. Danny Cassimon & Olusegun Fadare & George Mavrotas, 2023. "The Impact of Food Aid and Governance on Food and Nutrition Security in Sub-Saharan Africa," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    6. Ogunniyi, A. & Mavrotas, G. & Olagunju, K. & Fadare, O. & Rufai, A.M., 2018. "The Paradigm of Governance Quality, Migration and its Implication on Food and Nutritional Security in Sub- Saharan Africa: What does Dynamic Generalized Method of Moments estimation reveal?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275994, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Pilferage; Transfer program; Food subsidy; Transparency; Opacity;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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