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Combating Political Corruption with Policy Bundles / Frederico Finan, Maurizio Mazzocco.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Finan, Frederico.
Contributor:
National Bureau of Economic Research.
Mazzocco, Maurizio.
Series:
Working Paper Series (National Bureau of Economic Research) no. w28683.
NBER working paper series no. w28683
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2021.
Summary:
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.
Notes:
Print version record
April 2021.

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