Extraordinary Wealth, Globalization, and Corruption

19 Pages Posted: 3 May 2013

See all articles by Benno Torgler

Benno Torgler

Queensland University of Technology; CREMA; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Marco Piatti

Queensland University of Technology

Date Written: June 2013

Abstract

The billionaires of the world attract significant attention from the media and the public. Surprisingly, only a limited number of studies have explored empirically the determinants of extraordinary wealth. Using a large dataset we investigate whether globalization and corruption affect extreme wealth accumulation. We find evidence that an increase in globalization increases super‐affluence. In addition, we also find that an increase in corruption leads to an increase in the creation of super fortune. This supports the argument that in kleptocracies large sums are transferred into the hands of a small group of individuals.

Keywords: corruption, extraordinary wealth, globalization, superstars

JEL Classification: D31, N30, P46

Suggested Citation

Torgler, Benno and Piatti, Marco, Extraordinary Wealth, Globalization, and Corruption (June 2013). Review of Income and Wealth, Vol. 59, Issue 2, pp. 341-359, 2013. Available at SSRN: https://ssrn.com/abstract=2260086 or http://dx.doi.org/10.1111/roiw.12027

Benno Torgler

Queensland University of Technology ( email )

GPO Box 2434
2 George Street
Brisbane, Queensland 4001
Australia

CREMA

Gellertstrasse 18
Basel
Zurich, CH 8006
Switzerland

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Marco Piatti

Queensland University of Technology ( email )

2 George Street
Brisbane, Queensland 4000
Australia

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