Detection of corruption
(English)Manuscript (preprint) (Other academic)
One often mentioned reason for why it seems very hard to change the amount of corruption in an economy is that those enforcing the laws might also be corrupt. It seems as if the general belief is that if this problem of law enforcement is solved, combating corruption will be as easy to do in heavily corrupt economies as in less corrupt economies. The paper investigates this often implicit assumption by testing two similar propositions; first whether the amount of people being corrupt in a country has any effect on the probabilityof getting caught given the same legal system and enforcement. Second,whether it is harder to influence the probability of detection in a country with a high level of corruption than in a country with a low level of corruption given the same legal system and enforcement level. This is done in two ways; first through an analysis of a simple case and then through numerical simulation of a more extensive case. It is shown that the number of people being corrupt has both a direct negative impact on the likelihood of getting detected as well as an indirect negative impact, since it lowers the positive marginal effect that an increase in the degree of enforcement has on the probability of detection.
IdentifiersURN: urn:nbn:se:hj:diva-31969OAI: oai:DiVA.org:hj-31969DiVA: diva2:1034650