Do government audits reduce corruption? Estimating the impacts of exposing corrupt politicians by Eric Avis, Claudio Ferraz and Frederico Finan, published by Journal of Political Economy (4/2017). “…We interpret these reduced-form findings though a political agency model, which we structurally estimate. Based on our estimated model, the reduction in corruption comes mostly from the audits increasing the perceived threat of the non-electoral costs of engaging in corruption.”
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