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Combating Political Corruption with Policy Bundles

Author

Listed:
  • Frederico Finan
  • Maurizio Mazzocco

Abstract

In this paper, we develop a dynamic model of politicians who can engage in corruption. The model offers important insights into what determines corruption and how to design policy to combat it. We estimate the model using data from Brazil to measure voters' willingness to pay for various commonly-proposed anti-corruption policies, such as increasing audit probabilities, increasing politicians' wages, and extending term limits. We document that while voters have a high willingness to pay for audit policies, due to their effectiveness in reducing corruption, a multi-pronged approach that bundles certain policies can achieve similar welfare gains at a fraction of the cost.

Suggested Citation

  • Frederico Finan & Maurizio Mazzocco, 2021. "Combating Political Corruption with Policy Bundles," NBER Working Papers 28683, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28683
    Note: DEV POL
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    Citations

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    Cited by:

    1. Gustavo J. Bobonis & Paul Gertler & Marco Gonzalez-Navarro & Simeon Nichter, 2023. "Does Combating Corruption Reduce Clientelism?," NBER Working Papers 31266, National Bureau of Economic Research, Inc.
    2. Chen, Shuai & Ge, Erqi, 2022. "The Anti-Corruption Campaign and the Inter-Generational Transmission of Working in Bureaucracy: Evidence from China," GLO Discussion Paper Series 1159, Global Labor Organization (GLO).
    3. Chen, Shuai & Ge, Erqi, 2024. "The Anti-Corruption Campaign and the Inter-Generational Transmission of Working in Bureaucracy: Evidence from China," GLO Discussion Paper Series 1159 [rev.], Global Labor Organization (GLO).
    4. Chen, Shuai & Ge, Erqi, 2022. "The Anti-Corruption Campaign and the Inter-Generational Transmission of Working in Bureaucracy: Evidence from China," IZA Discussion Papers 15569, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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