Corruption clubs: empirical evidence from kernel density estimates
Source: Applied Economics, Volume 39, Number 12, July 2007 , pp. 1565-1572(8)
Abstract:A common finding of many analytical models is the existence of multiple equilibria of corruption. Countries characterized by the same economic, social and cultural background do not necessarily experience the same levels of corruption. In this article, we use Kernel Density Estimation techniques to analyse the cross-country distribution of corruption. Particular emphasis will be given to the question whether the distribution of corruption shows more than one peak. We find that most of the estimated densities exhibit twin peaks. We also provide some evidence on the intra-distribution dynamics and the persistence of corruption. We find the group of countries classified within the two 'clubs' to be very stable. Corruption is a highly persistent phenomenon. Substantial changes in the economic, political and cultural environment of countries within the 'corruption club' are required before a significant decline of corruption is to be expected.
Document Type: Research Article
Affiliations: 1: Department of Agricultural Economics, University of Kiel, Olshansenstr. 40, D-24118 Kiel, Germany 2: Department of Economics, Vienna University of Economics and Business Administration, Augasse 2-6, A-1090 Vienna, Austria
Publication date: July 1, 2007