Where's Waldo? Searching for the Hidden Variable of Corruption
34 Pages Posted: 1 Aug 2011 Last revised: 21 Aug 2011
Date Written: 2011
Abstract
The indices of corruption available and used in the literature - government-recorded, perception-based, and experience-based - are all subject to errors in measurement that can lead to biased research results. In this paper, we work to identify the "true" value of corruption hidden by measurement error. We analyze the nature of the measurement errors inherent in frequently used indices of corruption, and we attempt to mitigate the biases that result from these errors to obtain identification and consistent estimators by combining substantive knowledge about corruption with an instrumental variables method for a linear errors-in-variables model.
Keywords: Corruption, Measurement Error
Suggested Citation: Suggested Citation
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