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http://ssrn.com/abstract=599042
 
 

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Corruption in America


Edward L. Glaeser


Harvard University - John F. Kennedy School of Government, Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)

Raven E. Saks


U.S. Federal Reserve - Division of Research and Statistics

October 2004

Harvard Institute of Economic Research Discussion Paper No. 2043

Abstract:     
We use a data set of federal corruption convictions in the U.S. to investigate the causes and consequences of corruption. More educated states, and to a less degree richer states, have less corruption. This relationship holds even when we use historical factors like education in 1928 or Congregationalism in 1890, as instruments for the level of schooling today. The level of corruption is weakly correlated with the level of income inequality and racial fractionalization, and uncorrelated with the size of government. There is a weak negative relationship between corruption and employment and income growth. These results echo the cross-country findings, and support the view that the correlation between development and good political outcomes occurs because more education improves political institutions.

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Date posted: October 4, 2004  

Suggested Citation

Glaeser, Edward L. and Saks, Raven E., Corruption in America (October 2004). Harvard Institute of Economic Research Discussion Paper No. 2043. Available at SSRN: http://ssrn.com/abstract=599042 or http://dx.doi.org/10.2139/ssrn.599042

Contact Information

Edward L. Glaeser (Contact Author)
Harvard University - John F. Kennedy School of Government, Department of Economics ( email )
Littauer Center
Room 315A
Cambridge, MA 02138
United States
617-496-2150 (Phone)
617-496-1722 (Fax)
Brookings Institution
1775 Massachusetts Ave. NW
Washington, DC 20036-2188
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Raven E. Saks
U.S. Federal Reserve - Division of Research and Statistics ( email )
20th and C Streets, NW
Washington, DC 20551
United States
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