On the Economic Incentives for Taking Bribes

Posted: 28 Sep 2014 Last revised: 5 Apr 2016

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

Daniel P. Rich

Illinois State University - Department of Economics

Date Written: 1989

Abstract

This paper presents an empirical analysis of the factors affecting bribe taking by public officials. Factors influencing the acceptance of bribes include: the probability of being convicted, severity of punishment, government salary relative to private sector income, the demonstration effect, and the unemployment rate. Our results indicate that higher probability of being convicted discourages the acceptance of bribes as does more severe punishment. Low relative earnings, high unemployment, and the demonstration effect of aggregate advertising all lead to increased bribe taking.

Note: Copyright Kluwer Academic Publishers 1989.

Suggested Citation

Goel, Rajeev K. and Rich, Daniel P., On the Economic Incentives for Taking Bribes (1989). Public Choice, Vol. 61, No. 3, pp. 269-275, 1989. Available at SSRN: https://ssrn.com/abstract=2501522

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Daniel P. Rich

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States
309-438-7647 (Phone)

HOME PAGE: http://www.econ.ilstu.edu/faculty/index.html

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