Authors: Noel D Johnson Courtney L LaFountain Steven Yamarik
Publish Date: 2010/03/25
Volume: 147, Issue: 3-4, Pages: 377-393
Abstract
We estimate the impact of corruption on growth of output per worker in US states We improve on existing studies of the cost of corruption by using a better specified empirical model focusing on a study population that is less likely to be affected by parameter heterogeneity and controlling for endogeneity using political variables to instrument for corruption We find that corruption plays a significant and causal role in lowering growth and investment across the states
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