Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/215624
Authors: 
Parra, Daniel
Muñoz-Herrera, Manuel
Palacio, Luis
Year of Publication: 
2019
Series/Report no.: 
WZB Discussion Paper No. SP II 2019-401
Publisher: 
Wissenschaftszentrum Berlin für Sozialforschung (WZB), Berlin
Abstract: 
We use a laboratory experiment to study the impact of transparency on reducing corruption in contexts where embezzlement and bribery can co-occur. These contexts are closely related to grand corruption settings, where different types of corruption occur and allow people in power to take advantage of their position. Transparency is expected to have a positive effect on reducing corruption. However, our results show that transparency decreases embezzlement by roughly 10 percentage points, while it has no significant effect on bribery. The observed differential impact of transparency could be attributed to strategic lying by the resource manager, who acts as if low public investment rates were a consequence of bad luck (low budget) instead of misappropriation. This suggests that the impact of transparency cannot be generalized to all types of corruption when different types co-exist.
Subjects: 
embezzlement
bribery
grand corruption
JEL: 
C91
D72
D73
Document Type: 
Working Paper

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