Does inequality foster corruption?

Research output: Contribution to journalArticlepeer-review

Abstract

In this paper, we investigate how inequality affects corruption in the presence of an imperfect credit market. We favor an explanation based on a multimarket framework where corruption in one market (or sector) arises because of imperfections exacerbated by inequality in related markets. We demonstrate that even when an individual's ability to pay bribes and benefit from engaging in corruption are not affected by wealth level, greater (wealth) inequality will lead to an increase in corruption. © 2013 Wiley Periodicals, Inc.

Bibliographical metadata

Original languageEnglish
Pages (from-to)602-619
Number of pages17
JournalJournal of Public Economic Theory
Volume15
Issue number4
DOIs
Publication statusPublished - Aug 2013