Two sides of the same coin or two different coins? Exploring the duality of corruption in Latin America

Produced by: 
Available from: 
2021
Paper author(s): 
Ella Hugo
David A. Savage
Friedrich Schneider
Benno Torgler
Topic: 
Financial Economics
Year: 
2021

The ambiguous phenomenon of corruption has long been the cause of great theoretical debate in economics. By using Structural Equation Modelling, with the two types of corruption as a latent variable, this paper employs causal and indicative variables specific to the Latin American region to test for rent seeking and systemic corruption in the period between 1980-2018. The findings provide evidence for two types of corruption, one generated by greed, and the other a solution to market failures. Such results support the view that corruption encompasses a complex set of social behaviours.

ACCESS PAPER

Research section: 
Latest Research
Share this