Economic growth, law, and corruption: evidence from India

Is corruption influenced by economic growth? Are legal institutions such as the ‘Right to Information Act (RTI) 2005’ in India effective in curbing corruption? Using a panel dataset covering 20 Indian states for the years 2005 and 2008 we estimate the effects of growth and law on corruption. Accounting for endogeneity, omitted fixed factors, and other nationwide changes we find that economic growth reduces overall corruption as well as corruption in banking, land administration, education, electricity, and hospitals. Growth reduces bribes but has little impact on corruption perception. In contrast the RTI Act reduces both corruption experience and corruption perceptio

Inherited Institutions: Cooperation in the Light of Democratic Legitimacy

We experimentally investigate whether the procedural history of a sanctioning institution affects cooperation in a social dilemma. Subjects inherit the institutional setting from a previous generation of subjects who either decided on the implementation of the institution democratically by majority vote or were exogenously assigned a setting. In order to isolate the impact of the voting procedure, no information about the cooperation history is provided. In line with existing empirical evidence, we observe that in the starting generation cooperation is higher (lower) with a democratically chosen (rejected) institution, as compared to the corresponding, randomly imposed setting. In the second generation, the procedural history only partly affects cooperation. While there is no positive democracy effect when the institution is implemented, the vote-based rejection of the institution negatively affects cooperation in the second generation. The effect size is similar to that in the first generation

Can Bottom-Up Institutional Reform Improve Service Delivery?

This article makes three contributions to the literature. First, it provides new evidence of the impact of community monitoring interventions using a unique dataset from the Citizen Visible Audit (CVA) program in Colombia. In particular, this article studies the effect of social audits on citizens' assessment of service delivery performance. The second contribution is the introduction a theoretical framework to understand the pathway of change, the necessary building blocks that are needed for social audits to be effective. Using this framework, the third contribution of this article is answering the following questions: i) under what conditions do citizens decide to monitor government activity and ii) under what conditions do governments facilitate citizen engagement and become more accountable

Reducing Corruption in Public Education Programs in Africa: Instruments and Capture in Madagascar

This paper investigates how the choice of public expenditure instrument is affecting capture in the public education sector. We analyze data on two public funding schemes in Madagascar. We find that there is much more capture of in-kind transfers than of cash transfers. Capture of both instruments declines with better local access to media infirmation and with higher local literacy rates. However, capture of cash grants falls rapidly with a raise in the level of education of the intended beneficiaries, while this effect is significantly weaker for capture of in-kind funds. Our findings suggest that intensive monitoring and increased public access to infirmation should be combined with the right instrument for public funding implementation in order to eradicate capture and corruption

Soap Operas and Fertility: Evidence from Brazil

This paper focuses on fertility choices in Brazil, a country where soap operas (novelas) portray families that are much smaller than in reality, to study the effects of television on individual behavior. Using Census data for the period 1970-1991, the paper finds that women living in areas covered by the Globo signal have significantly lower fertility. The effect is strongest for women of lower socioeconomic status and for women in the central and late phases of their fertility cycle. Finally, the paper provides evidence that novelas, rather than television in general, affected individual choices