Discussion Paper Details

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Title: Legalizing Bribe Giving

Author(s): Martin Dufwenberg and Giancarlo Spagnolo

Publication Date: November 2012

Keyword(s): bribes, corruption, immunity, law enforcement, leniency and whistleblowers

Programme Area(s): Development Economics, Industrial Organization and Public Economics

Abstract: A model of harassment bribes (paid for services one is entitled to) is developed and used to analyze the recent proposal to legalize paying bribes while increasing fines on accepting bribes. We explore performance as regards corruption deterrence and public service provision. A modified scheme, where immunity is conditional on reporting, addresses some key objections. We highlight complementarities with other policies aimed at improving accountability and performance of law enforcement agencies, and discuss the relevance for fighting other forms of corruption.

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Bibliographic Reference

Dufwenberg, M and Spagnolo, G. 2012. 'Legalizing Bribe Giving'. London, Centre for Economic Policy Research.