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Valuing the social cost of corruption using subjective well being data and the technique of vignettes

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  • Carmelo J. León
  • Jorge E. Araña
  • Javier de León

Abstract

Corruption can have an effect on people's happiness and satisfaction, and therefore, can generate a social cost. However, the perceptions of corruption and satisfaction can also vary across subjects, due to socioeconomic and cultural characteristics. This article studies the differences in the perceptions of corruption and satisfaction across subjects, utilizing the technique of vignettes for the correction of the bias that follows from the differences in the response scale across individuals. The evidence comes from a sample of citizens in Spain, who are asked about their perceptions of corruption and personal satisfaction. The results show that there exists a response scale bias, both for corruption and satisfaction. These results are utilized to approximate the social cost of corruption.

Suggested Citation

  • Carmelo J. León & Jorge E. Araña & Javier de León, 2013. "Valuing the social cost of corruption using subjective well being data and the technique of vignettes," Applied Economics, Taylor & Francis Journals, vol. 45(27), pages 3863-3870, September.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3863-3870
    DOI: 10.1080/00036846.2012.741678
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    Cited by:

    1. 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.
    2. Qiang Li & Lian An, 2020. "Corruption Takes Away Happiness: Evidence from a Cross-National Study," Journal of Happiness Studies, Springer, vol. 21(2), pages 485-504, February.
    3. León, Carmelo J. & de León, Javier & Araña, Jorge E. & González, Matías M., 2015. "Tourists' preferences for congestion, residents' welfare and the ecosystems in a national park," Ecological Economics, Elsevier, vol. 118(C), pages 21-29.

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