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Corruption and cheating: Evidence from rural Thailand

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  • Hübler, Olaf
  • Koch, Melanie
  • Menkhoff, Lukas
  • Schmidt, Ulrich

Abstract

This study tests the prediction that perceived corruption reduces ethical behavior. Integrating a standard “cheating” experiment into a broad household survey in rural Thailand, we find tentative support for this prediction: respondents who perceive corruption in state affairs are more likely to cheat and, thus, to fortify the negative consequences of corruption. Interestingly, there is a small group of non-conformers. The main relation is robust to consideration of socio-demographic, attitudinal, and situational control variables. Attendance of others at the cheating experiment, stimulating the reputational concern to be seen as honest, reduces cheating, thus indicating transparency as a remedy.

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  • Hübler, Olaf & Koch, Melanie & Menkhoff, Lukas & Schmidt, Ulrich, 2021. "Corruption and cheating: Evidence from rural Thailand," World Development, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:wdevel:v:145:y:2021:i:c:s0305750x21001388
    DOI: 10.1016/j.worlddev.2021.105526
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    More about this item

    Keywords

    Corruption; Cheating; Individual characteristics; Lab-in-the-field experiment;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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