Corruption and Inequality as Correlates of Social Trust: Fairness Matters More Than Similarity

Argued is that the fairness of a society affects its level of social trust more than does its homogeneity. Societies with fair procedural rules (democracy), fair administration of rules (freedom from corruption), and fair (relatively equal and unskewed) income distribution produce incentives for trustworthy behavior, develop norms of trustworthiness, and enhance interpersonal trust. Based on a multi-level analysis using the World Values Surveys data that cover 80 countries, I find that (1) freedom from corruption, income equality, and mature democracy are positively associated with trust, while ethnic diversity loses significance once these factors are accounted for; (2) corruption and inequality have an adverse impact on norms and perceptions of trustworthiness; (3) the negative effect of inequality on trust is due to the skewness of income rather than its simple heterogeneity; and (4) the negative effect of minority status is greater in more unequal and undemocratic countries, consistent with the fairness explanation.This publication is Hauser Center Working Paper No. 29. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

A Comparative Study of Inequality and Corruption

We argue that income inequality increases the level of corruption through material and normative mechanisms. The wealthy have both greater motivation and opportunity to engage in corruption, while the poor are more vulnerable to extortion and less able to monitor and hold the rich and powerful accountable as inequality increases. Inequality also adversely affects peoples social norms about corruption and beliefs about the legitimacy of rules and institutions, and thereby makes it easier to tolerate corruption as acceptable behavior. Our comparative analysis of 129 countries utilizing two-staged least squares methods with a variety of instrumental variables supports our hypotheses, using different measures of corruption (the World Banks Control of Corruption Index and the Transparency Internationals Corruption Perceptions Index). The explanatory power of inequality is at least as important as conventionally accepted causes of corruption such as economic development. We also find a significant interaction effect between inequality and democracy, and evidence that inequality affects norms and perceptions about corruption, using the World Values Survey data. Since corruption also contributes to income inequality, societies often fall into vicious circles of inequality and corruption.This publication is Hauser Center Working Paper No. 22. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

Money in the theory of economic growth: an analysis of comparative-dynamic and optimality aspects of growth equilibrium

The study of economic development or growth has always been one of the central areas of economic study. The main thrust of Adam Smith\u27s Wealth of Nations was to develop a theory of economic growth. Economic growth was also the primary concern of the great economist like Malthus, Marx, Schumpeter, and Keynes. Modern growth theory is built upon the foundations laid by these great masters

Signatures of a Deconfined Phase Transition on the Shastry-Sutherland Lattice: Applications to Quantum Critical SrCu2_2(BO3_3)2_2

We study a possible deconfined quantum phase transition in a realistic model of a two-dimensional Shastry-Sutherland quantum magnet, using both numerical and field theoretic techniques. Using the infinite density matrix renormalization group (iDMRG) method, we verify the existence of an intermediate plaquette valence bond solid (pVBS) order, with two fold degeneracy, between the dimer and N\'eel ordered phases. We argue that the quantum phase transition between the N\'eel and pVBS orders may be described by a deconfined quantum critical point (DQCP) with an emergent O(4) symmetry. By analyzing the correlation length spectrum obtained from iDMRG, we provide evidence for the DQCP and emergent O(4) symmetry in the lattice model. Such a phase transition has been reported in the recent pressure tuned experiments in the Shastry-Sutherland lattice material $\mathrm{SrCu_2 (BO_3)_2}$. The non-symmorphic lattice structure of the Shastry-Sutherland compound leads to extinction points in the scattering, where we predict sharp signatures of a DQCP in both the phonon and magnon spectra associated with the spinon continuum. The effect of weak interlayer couplings present in the three dimensional material is also discussed. Our results should help guide the experimental study of DQCP in quantum magnets.Comment: 22 pages, 6 tables, 15 figures; in v2 numerical details added in appendi

Jamming transition in a highly dense granular system under vertical vibration

The dynamics of the jamming transition in a three-dimensional granular system under vertical vibration is studied using diffusing-wave spectroscopy. When the maximum acceleration of the external vibration is large, the granular system behaves like a fluid, with the dynamic correlation function G(t) relaxing rapidly. As the acceleration of vibration approaches the gravitational acceleration g, the relaxation of G(t) slows down dramatically, and eventually stops. Thus the system undergoes a phase transition and behaves like a solid. Near the transition point, we find that the structural relaxation shows a stretched exponential behavior. This behavior is analogous to the behavior of supercooled liquids close to the glass transition.Comment: 5 pages, 5 figures, accepted by Phys. Rev.

The legacies of state corporatism in Korea: regulatory capture in the Sewol ferry tragedy

Regarding the causes of the Sewol ferry accident that claimed 304 lives in April 2014, some scholars have blamed neoliberal reforms such as deregulation and privatization for the safety regulatory failure. Others have highlighted the role of industry influence and corruption. Our analysis shows that regulatory capture was the crucial causal factor; moreover, this capture was institutionalized from the state-corporatist arrangements of the authoritarian period rather than reflecting new arrangements under the democratic era or corruption per se. The delegation of the critical safety regulation enforcement to the shipping industry association was not introduced as a neoliberal reform but in the context of state corporatism of the Park Chung-hee regime. Democratic governments continued to protect the monopoly of the lucrative Incheon–Jeju ferry business, contrary to neoliberal logic. The legacies of state corporatism persist despite post-financial crisis reform