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Cheating and Corruption: Evidence from a Household Survey

Author

Listed:
  • Olaf Hübler
  • Melanie Koch
  • Lukas Menkhoff
  • Ulrich Schmidt

Abstract

This study tests the prediction that a corrupt government reduces ethical behavior among its citizens. We integrate a standard "cheating" experiment into a broad household survey and find clear support for this prediction: respondents who perceive corruption in state affairs are more likely to cheat. Interestingly, there is a small group of non-conformers. The main relation is robust to consideration of many (largely insignificant) socio-demographic control variables. Attendance of others at the cheating experiment, thus stimulating the reputational concern to be seen as honest, reduces cheating. Again, this does not diminish the predictive role of corruption.

Suggested Citation

  • Olaf Hübler & Melanie Koch & Lukas Menkhoff & Ulrich Schmidt, 2019. "Cheating and Corruption: Evidence from a Household Survey," Discussion Papers of DIW Berlin 1826, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1826
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.684642.de/dp1826.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Cheating; Corruption; Individual Characteristics; Lab-in-the-Field Experiment;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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