The Effect of Particularism on Corruption: Theory and Empirical Evidence
University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 294
29 Pages Posted: 27 Feb 2015
Date Written: February 27, 2015
Abstract
This paper investigates the role played by the cultural norms of particularism and universalism for collusive bribery. In our theoretical framework, the act of proposing or demanding a bribe violates a commonly held social norm, thus producing a psychological cost. By lowering this psychological cost, particularism increases the probability of offering or asking for a bribe. We test the predictions of the model by using individual-level data for 25 countries from the European Social Survey. Consistent with the theory, particularism is found to have a positive causal effect on the probability of offering a bribe, but no effect on the probability to be asked for a bribe. Overall, our findings indicate that policies aimed at favoring universalism may provide an effective tool in the fight against corruption.
Keywords: Corruption, Bribe, Particularism, Universalism.
JEL Classification: D73, O17, C71, K42, Z13.
Suggested Citation: Suggested Citation
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