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“Plata o Plomo?”: Bribe and Punishment in a Theory of Political Influence

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  • DAL BÓ, ERNESTO
  • DAL BÓ, PEDRO
  • DI TELLA, RAFAEL
Abstract
We present a model where groups attempt to influence policies using both bribes (plata, Spanish for silver) and the threat of punishment (plomo, Spanish for lead). We then use it to make predictions about the quality of a country's public officials and to understand the role of institutions granting politicians with immunity from legal prosecution. The use of punishment lowers the returns from public office and reduces the incentives of high-ability citizens to enter public life. Cheaper plomo and more resources subject to official discretion are associated with more frequent corruption and less able politicians. This predicts that violence in a country will typically go together with corruption and worse politicians. Moreover, the possibility of punishment changes the nature of the influence game, so that even cheaper plata can lower the ability of public officials. Protecting officials from accusations of corruption (immunity) will decrease the frequency of corruption if the judiciary is weak and may increase the quality of politicians. These predictions cannot emerge from a traditional model where only bribes are used.

Suggested Citation

  • Dal Bó, Ernesto & Dal Bó, Pedro & Di Tella, Rafael, 2006. "“Plata o Plomo?”: Bribe and Punishment in a Theory of Political Influence," American Political Science Review, Cambridge University Press, vol. 100(1), pages 41-53, February.
    • Handle: RePEc:cup:apsrev:v:100:y:2006:i:01:p:41-53_06
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    7. Sanchari Choudhury, 2021. "Regulation and Corruption: Evidence from the United States," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 897-934, August.
    8. Ferraz, Claudio & Finan, Frederico S., 2008. "Motivating Politicians: The Impacts of Monetary Incentives on Quality and Performance," IZA Discussion Papers 3411, Institute of Labor Economics (IZA).
    9. Bordignon, Massimo & Gamalerio, Matteo & Turati, Gilberto, 2020. "Manager or professional politician? Local fiscal autonomy and the skills of elected officials," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    10. Braendle, Thomas, 2013. "Do Institutions Affect Citizens' Selection into Politics?," Working papers 2013/04, Faculty of Business and Economics - University of Basel.
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    15. Stephane Wolton, 2015. "Political conflicts, the role of opposition parties, and the limits on taxation," Journal of Theoretical Politics, , vol. 27(4), pages 570-587, October.
    16. Ethan Bueno De Mesquita & Catherine Hafer, 2008. "Public Protection Or Private Extortion?," Economics and Politics, Wiley Blackwell, vol. 20(1), pages 1-32, March.
    17. Marco Di Cataldo & Nicola Mastrorocco, 2022. "Organized Crime, Captured Politicians, and the Allocation of Public Resources [“Mafiaand Public Spending: Evidence on the Fiscal Multiplier from a Quasi-Experiment]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 38(3), pages 774-839.
    18. repec:zbw:bofitp:2020_024 is not listed on IDEAS
    19. Julio A. Ramos Pastrana, 2021. "Who’s getting the office? Party dominance and elected executives’ career path," Kyklos, Wiley Blackwell, vol. 74(2), pages 270-297, May.
    20. Alfano, Maria Rosaria & Baraldi, Anna Laura & Papagni, Erasmo, 2020. "Do Voters Choose Better Politicians than Political Parties? Evidence from a Natural Experiment in Italy," FACTS: Firms And Cities Towards Sustainability 308020, Fondazione Eni Enrico Mattei (FEEM) > FACTS: Firms And Cities Towards Sustainability.
    21. Caglayan, Mustafa & Flamini, Alessandro & Jahanshahi, Babak, 2021. "Hindering human capital accumulation: A hidden cost of the silent mafia?," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 828-845.
    22. Tamara Fioroni & Andrea Mario Lavezzi & Giovanni Trovato, 2023. "Organized Crime, Corruption and Economic Growth," Discussion Papers 2023/298, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    23. Palanza, Valeria & Scartascini, Carlos & Tommasi, Mariano, 2012. "On the Institutionalization of Congress(es) in Latin America and Beyond," IDB Publications (Working Papers) 4195, Inter-American Development Bank.
    24. David P. Baron & Daniel Diermeier, 2007. "Strategic Activism and Nonmarket Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 599-634, September.

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