2002
DOI: 10.1006/jeth.2001.2956
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On the Cultural Transmission of Corruption

Abstract: We provide a cultural explanation to the phenomenon of corruption in the framework of an overlapping generations model with intergenerational transmission of values. W e show that the economy has two steady states with di erent levels of corruption. The driving force in the equilibrium selection process is the education e ort exerted by parents which depends on the distribution of ethics in the population and on expectations about future policies. We propose some policy interventions which via parents' e orts … Show more

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Cited by 197 publications
(71 citation statements)
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References 7 publications
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“…As pointed out by some other theoretical papers like Glomm & Ravikumar (1995), Bisin & Verdier (2000) or Hauk & Saez-Marti (2002), multiple equilibria arise due to failures in the expectations coordination. Then, the implementation of public policies or the commitment from authorities may be a solution to these inefficiencies.…”
Section: Corollary 1 When E S and E U ∈ [E E] One Economy That Woulmentioning
confidence: 90%
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“…As pointed out by some other theoretical papers like Glomm & Ravikumar (1995), Bisin & Verdier (2000) or Hauk & Saez-Marti (2002), multiple equilibria arise due to failures in the expectations coordination. Then, the implementation of public policies or the commitment from authorities may be a solution to these inefficiencies.…”
Section: Corollary 1 When E S and E U ∈ [E E] One Economy That Woulmentioning
confidence: 90%
“…As in Bisin & Verdier (2000) or Hauk & Saez-Marti (2002), we consider that expectations are no longer stationary, and then study the dynamic implications of agents coordination on a particular expectation regarding future environmental quality. We can then claim that:…”
Section: Indeterminacy and Self-fulfilling Equilibriamentioning
confidence: 99%
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“…As Carney (1998) correctly notes, a high tolerance of corruption must not be confused with genuine cultural practices derived from cultural identity. The former is simply bad (wrong) habit that has come to be regarded as socially acceptable and justifiable; see also Hauk and Saez-Marti (2002).…”
Section: Corruption -The Parametersmentioning
confidence: 99%
“…A related literature attributes time-varying corruption to multiple equilibria (cf. Tirole (1996) and Hauk and Saez-Marti (2002)), and to the depletion of an incumbent's resources in Bicchieri and Duffy (1997).…”
mentioning
confidence: 99%