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Does Transparency Reduce Corruption ?

Author

Listed:
  • Octavian Strimbu
  • Patrick Gonzalez
Abstract
Does a better monitoring (transparency) of officials lowers the incidence of corruption ? Using a common agency game with imperfect information, we show that the answer depends on the measure of corruption that one uses. More transparency lowers the prevalence of corruption but it may raise the average bribe as it motivates the corruptor to bid more aggressively for the agent’s favour. We show that transparency affects the prevalence of corruption at the margin through a competitive effect and an efficiency effect.

Suggested Citation

  • Octavian Strimbu & Patrick Gonzalez, 2013. "Does Transparency Reduce Corruption ?," Cahiers de recherche CREATE 2013-5, CREATE.
    • Handle: RePEc:lvl:creacr:2013-5
    as

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    File URL: https://www.create.ulaval.ca/sites/create.ulaval.ca/files/Publications/create2013-5.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Corruption; Transparency; Common Agency;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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