Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences
Abstract
This paper develops 30 novel quantitative indicators of grand corruption that operationalize
20 distinct techniques of corruption in the context of public procurement. Each indicator
rests on a thorough qualitative understanding of rent extraction from public contracts by
corrupt networks as evidenced by academic literature, interviews and media content
analysis. Feasibility and usefulness of the proposed indicators are demonstrated using
micro-level public procurement data from Hungary in 2009-2012. While the prime value of
this broad set of indicators is the possibility of combining them into a robust composite
indicator of high-level corruption, the high degree of detail also reveals that many
regulatory interventions have succeeded in changing the form of corruption, but not its
overall incidence