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Norms of Corruption in Politicians’ Malfeasance

Author

Listed:
  • Gustavo J. Bobonis
  • Anke Kessler
  • Xin Zhao
  • Anke S. Kessler

Abstract

To what extent can anti-corruption measures serve to limit patronage and corrupt networks effectively and sustainably in clientelist societies with a prevailing norm of corruption? We develop a political agency model in which office holders are motivated to reduce rent seeking behavior through re-election incentives operating via elections and audits (formal institutions), but also through reputational or self-image concerns that are influenced by the prevailing norm on corruption in their peer group (informal institutions). We show that, while the formal institutions of audits and elections have the desired direct effect of reducing corruption, they also affect informal rules of conduct, which can have unintended effects. In particular, in clientelist societies with high levels of corruption, the social concerns work in opposition to formal incentives provided by anti-corruption efforts. Applying the theory to data from Puerto Rico’s anti-corruption municipal audits program, we find evidence consistent with the idea that anti-corruption measures are less effective due to social spillovers.

Suggested Citation

  • Gustavo J. Bobonis & Anke Kessler & Xin Zhao & Anke S. Kessler, 2025. "Norms of Corruption in Politicians’ Malfeasance," CESifo Working Paper Series 11715, CESifo.
  • Handle: RePEc:ces:ceswps:_11715
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp11715.pdf
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    More about this item

    Keywords

    norms of corruption; informal institutions; audits; electoral discipline;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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