Government Concentration: Cause of or Remedy for Corruption?
13 Pages Posted: 1 Dec 2012
Date Written: November 30, 2012
This paper presents evidence for an effect of corruption on government concentration in OECD countries. Furthermore, it suggests a rationale for this direction of causality: Corruption increases unemployment, and this effect is weaker for countries with concentrated governments. Hence, voters appear to react to perceived corruption by electing a single strong party to mitigate the negative consequences of corruption on the economy.
Keywords: corruption, government concentration, unemployment
JEL Classification: D72, D73, H11
Suggested Citation: Suggested Citation