1999
DOI: 10.2139/ssrn.189433
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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 85 publications
(89 citation statements)
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“…Our paper is related more generally to the large literature on cultural transmission and norms and the effect of cultural factors on institutions and economic development, including Bisin andVerdier (2001, 2010), Gorodnichenko and Roland (2016), Hauk and Saez Marti (2002), Saez Marti and Zenou (2012), and Tabellini (2008. A common assumption in this literature is imperfect empathy, which corresponds to the paternalistic element in our theory: parents use their own preferences to evaluate children's choices.…”
Section: Related Literaturementioning
confidence: 95%
“…Our paper is related more generally to the large literature on cultural transmission and norms and the effect of cultural factors on institutions and economic development, including Bisin andVerdier (2001, 2010), Gorodnichenko and Roland (2016), Hauk and Saez Marti (2002), Saez Marti and Zenou (2012), and Tabellini (2008. A common assumption in this literature is imperfect empathy, which corresponds to the paternalistic element in our theory: parents use their own preferences to evaluate children's choices.…”
Section: Related Literaturementioning
confidence: 95%
“…The anonymity privilege that large cities offer could facilitate such behavior. Thus differences in social ethical structure based upon city size, as suggested by Hauk and Sáez-Marti (2002), can systematically be transmitted to students.…”
Section: Data Descriptionmentioning
confidence: 99%
“…Also closely related is the work of Hauk and Saez-Marti (2002) on the cultural transmission of corruption. While their application is different from mine, they also rely on the Bisin and Verdier (2001) framework and assume that agents can either be honest or dishonest.…”
Section: A Similar Results Was Derived Bymentioning
confidence: 99%
“…Here, as in and Hauk and Saez-Marti (2002), parents are assumed to form rational expectations on the evolution of values from their generation to the next. For completeness, note that the total welfare of an adult is composed of the direct gratification he gets from his labor market activity and of the utility derived from cultural transmission.…”
Section: Cultural Transmissionmentioning
confidence: 99%