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How corruption hits people when they are down
Institution:1. Department of Biochemistry and Molecular Biology, Mayo Clinic, Rochester, MN 55905, USA;2. Department of Orthopaedic Surgery, UConn Musculoskeletal Institute, UConn Health, Farmington, CT 06030, USA;1. State Key Laboratory of Information Photonics and Optical Communications, Beijing University of Posts and Telecommunications, Beijing 100876, China;2. Erik Jonsson School of Engineering and Computer Science, The University of Texas at Dallas, Richardson, TX 75080, USA;1. Institute of Law & Economics, University of Hamburg, Johnsallee 35, 20148, Hamburg, and CESifo, Munich, Germany;2. University Rennes 1, CNRS, CREM - UMR 6211, Condorcet Center for Political Economy, F-35000, Rennes, France, and DSP, Università Roma Tre, Rome, Italy
Abstract:Using Peruvian data, I show that victims of misfortune, particularly crime victims, are much more likely than non-victims to bribe public officials. Misfortune increases victims' demand for public services, raising bribery indirectly, and also increases victims' propensity to bribe certain officials conditional on using them, possibly because victims are desperate, vulnerable, or demanding services particularly prone to corruption. The effect is strongest for bribery of the police, where the increase in bribery comes principally through increased use of the police. For the judiciary the effect is also strong, and for some misfortunes is composed equally of an increase in use and an increase in bribery conditional on use. The expense and disutility of bribing thus compound the misery brought by misfortune.
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