Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms

The author exploits a unique data set on corruption containing information about estimated bribe payments by Ugandan firms. To guide the empirical analysis, he develops a simple rent-extortion model, which yields predictions on both the incidence o...

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Main Author: Svensson, Jakob
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2000/11/729382/must-pay-bribes-much-evidence-cross-section-firms
http://hdl.handle.net/10986/19749
id okr-10986-19749
recordtype oai_dc
spelling okr-10986-197492021-04-23T14:03:44Z Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms Svensson, Jakob BRIBERY BRIBES CAPITAL GOODS CIVIL SERVANTS COMPETITIVENESS CORRUPTION DISCOUNTED VALUE DISCRETION EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EXPORTS EXTORTION GOVERNMENT REGULATIONS GRAFT IMPORTS INCOME KICKBACKS LABOR FORCE LESS DEVELOPED COUNTRIES MACROECONOMICS MARGINAL PRODUCT MARKET PRICES MEDIA PREFERENTIAL PRINCIPAL AGENT MODEL PRODUCTION TECHNOLOGY PUBLIC OFFICIALS PUNISHMENT REGULATORY CAPTURE ROBBERY SUNK COSTS TAXATION THEFT TOTAL COSTS TRANSACTION COSTS UNEMPLOYMENT VALUATION WAGES The author exploits a unique data set on corruption containing information about estimated bribe payments by Ugandan firms. To guide the empirical analysis, he develops a simple rent-extortion model, which yields predictions on both the incidence of bribery, and the amount paid. Both predictions are consistent with the data. Firms typically have to pay bribes when dealing with public officials whose actions directly affect the firms' business operations. And the amount paid in bribes is not a fixed sum for a set of public services, but depends on the firm's ability to pay. Controlling for other potential explanations of the relationship between "ability to pay" and equilibrium graft, the author shows that the more a firm can pay, the more it has to pay. 2014-08-27T16:46:47Z 2014-08-27T16:46:47Z 2000-11 http://documents.worldbank.org/curated/en/2000/11/729382/must-pay-bribes-much-evidence-cross-section-firms http://hdl.handle.net/10986/19749 English en_US Policy Research Working Paper;No. 2486 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Uganda
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic BRIBERY
BRIBES
CAPITAL GOODS
CIVIL SERVANTS
COMPETITIVENESS
CORRUPTION
DISCOUNTED VALUE
DISCRETION
EMPIRICAL ANALYSIS
EMPIRICAL EVIDENCE
EQUILIBRIUM
EXPORTS
EXTORTION
GOVERNMENT REGULATIONS
GRAFT
IMPORTS
INCOME
KICKBACKS
LABOR FORCE
LESS DEVELOPED COUNTRIES
MACROECONOMICS
MARGINAL PRODUCT
MARKET PRICES
MEDIA
PREFERENTIAL
PRINCIPAL AGENT MODEL
PRODUCTION TECHNOLOGY
PUBLIC OFFICIALS
PUNISHMENT
REGULATORY CAPTURE
ROBBERY
SUNK COSTS
TAXATION
THEFT
TOTAL COSTS
TRANSACTION COSTS
UNEMPLOYMENT
VALUATION
WAGES
spellingShingle BRIBERY
BRIBES
CAPITAL GOODS
CIVIL SERVANTS
COMPETITIVENESS
CORRUPTION
DISCOUNTED VALUE
DISCRETION
EMPIRICAL ANALYSIS
EMPIRICAL EVIDENCE
EQUILIBRIUM
EXPORTS
EXTORTION
GOVERNMENT REGULATIONS
GRAFT
IMPORTS
INCOME
KICKBACKS
LABOR FORCE
LESS DEVELOPED COUNTRIES
MACROECONOMICS
MARGINAL PRODUCT
MARKET PRICES
MEDIA
PREFERENTIAL
PRINCIPAL AGENT MODEL
PRODUCTION TECHNOLOGY
PUBLIC OFFICIALS
PUNISHMENT
REGULATORY CAPTURE
ROBBERY
SUNK COSTS
TAXATION
THEFT
TOTAL COSTS
TRANSACTION COSTS
UNEMPLOYMENT
VALUATION
WAGES
Svensson, Jakob
Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms
geographic_facet Africa
Uganda
relation Policy Research Working Paper;No. 2486
description The author exploits a unique data set on corruption containing information about estimated bribe payments by Ugandan firms. To guide the empirical analysis, he develops a simple rent-extortion model, which yields predictions on both the incidence of bribery, and the amount paid. Both predictions are consistent with the data. Firms typically have to pay bribes when dealing with public officials whose actions directly affect the firms' business operations. And the amount paid in bribes is not a fixed sum for a set of public services, but depends on the firm's ability to pay. Controlling for other potential explanations of the relationship between "ability to pay" and equilibrium graft, the author shows that the more a firm can pay, the more it has to pay.
format Publications & Research :: Policy Research Working Paper
author Svensson, Jakob
author_facet Svensson, Jakob
author_sort Svensson, Jakob
title Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms
title_short Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms
title_full Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms
title_fullStr Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms
title_full_unstemmed Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms
title_sort who must pay bribes and how much? evidence from a cross-section of firms
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2000/11/729382/must-pay-bribes-much-evidence-cross-section-firms
http://hdl.handle.net/10986/19749
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