Pradiptyo, Rimawan (2012): Does Corruption Pay in Indonesia? If So, Who are Benefited the Most?
Download (3MB) | Preview
This paper aims to assess the discrepancies in sentencing corruptors by judges in Indonesia’s judicial system. The data are based on the Supreme Court’s decisions during the period of 2001-2009 which available in public domain in www.putusan.mahkamahagung.go.id. The data comprise of 549 cases, which involved 831 defendants. The defendants have been classified into five groups depending on their alleged scales of corruptions (i.e. petty, small, medium, large and grand scale of corruptions).
The explicit cost of corruption during the period of 2001-2009 was Rp73.1 trillion (about US $7.86 billion). In this paper, total financial punishment was estimated as the summation of the value of fines, seizure of assets (monetary only), and the compensation order sentenced by judges. The total financial punishment sentenced by the supreme judges during the period of 2001-2009 was Rp5.33 trillion (about US$573.12 million), therefore Rp67.77 trillion (US$7.28 billion) gap between the explicit cost of corruption and total financial punishment sentenced shall be borne by the tax payers.
Logistic and Tobin’s logistic (TOBIT) regressions have been used to analyse both the likelihood and the intensity of sentencing offenders, respectively, with particular punishments (i.e. imprisonment, fines, compensation order, etc.). The results show that the probability and the intensity of sentencing across various types of punishment do not correspond to the scale of corruptions. Offenders who committed petty and small scales corruption tend to be punished more severely than their medium, large and grand corruptors.
|Item Type:||MPRA Paper|
|Original Title:||Does Corruption Pay in Indonesia? If So, Who are Benefited the Most?|
|Keywords:||Corruption, Court Decisions, Probability of Sentencing, Intensity of Sentencing, Logistic Regression, Tobin’s Logistic (TOBIT) Regression|
|Subjects:||D - Microeconomics > D0 - General > D02 - Institutions: Design, Formation, Operations, and Impact
K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K42 - Illegal Behavior and the Enforcement of Law
K - Law and Economics > K1 - Basic Areas of Law > K14 - Criminal Law
|Depositing User:||Rimawan Pradiptyo|
|Date Deposited:||17 Sep 2012 13:34|
|Last Modified:||25 Feb 2016 05:58|
Becker, G.S. 1968. "Crime and Punishment: An Economic Approach," 70 Journal of Political Economy 1-13.
Bowles, R.. 2000. "Corruption,". in B. Boudewijn and G. De Greest, eds. Encyclopedia of Law and Economics, Vol. 5, The Economics of Crime and Litigation 460-491. Edward Elgar.
Bowles, R and N. Garoupa. 1997. "Casual Police Corruption and the Economics of Crime." 17 International Review of Law and Economics 75-87. ￼ Bowles, R., F. Gordon, R. Pradiptyo, C. McDougall, A. Perry, and R. Swaray. 2004. "Costs and Benefits of Sentencing Options -- Report to the Home Office," unpublished manuscript, Centre for Criminal Justice Economics and Psychology, University of York.
Bowles, R. and R. Pradiptyo. 2004. "An Economic Approach to Offending, Sentencing and Criminal Justice Interventions -- Report to Esmee Fairbairn Foundation," presented to Esmee Fairbairn Foundation, London.
Bowles R and Pradiptyo, R. (2005), A Study on Young Adults and the Criminal Justice System, Barrow Cadbury Trust., London, UK. URL: http://www.bctrust.org.uk/snapshots/economics-young-adult- crime/economics-young-adult-crime.pdf
Brace, N, R Kemp and R Snelgar (2003) SPSS for Psychologists; A Guide to Data Analysis using SPSS for Windows, 2nd eds, Palgrave MacMillan, New York.
Brand, S., and R. Price. 2000. "The Economic and Social Costs of Crime," Home Office Research Series Paper 217. London: Home Office.
Chapman, B., A. Mackie and J. Raine. 2002. "Fine Enforcement in Magistrates' Courts," Home Office Development and Practice Report 1, London, Home Office. Department for Constitutional Affairs (DCA). 2004. Magistrates' Courts Business Returns-- Annual Report 2002-2003. London: Department for Constitutional Affairs.
Dubourg, R., J. Hamed, and J. Thorns. 2005. "The Economic and Social Costs of Crime Against Individuals and Households 2003/04," Home Office Online Report 30/05. London: Home Office.
Einat, T. 2004. "Criminal Fine Enforcement in Israel; Administration, Policy, Evaluation and Recommendations," 6 Punishment & Society 175-194.
Fung, P. 2004. "On the Effective Use of Stigma as a Crime-Deterrent," 48 European Economic Review 715-728.
Garoupa, N. 1997. "The Theory of Optimal Law Enforcement." 11 Journal of Economic Surveys 267-295.
Garoupa, N., and D. Klerman. 2002. "Optimal Law Enforcement with a Rent-Seeking Government," 4 American Law & Economics Review 116-140.
Garoupa, N., and D. Klerman. 2004. "Corruption and the Optimal Use of Nonmonetary Sanctions," 24 International Review of Law & Economics 219-225.
Gneezy, U., and A. Rustichini. 2004. "Incentives, Punishment and Behavior", in Camerer, Loewenstein and Rabin, eds. Advances in Behavioral Economics. Princeton Univ. Press.
Levitt, S.D., and T.J. Miles. 2007. "Empirical Study of Criminal Punishment," in A.M. Polinsky and S. Shavell, eds. Handbook of Law and Economics 1, North Holland.
Maddala, G.S. (2001) Introduction to Econometrics; 3rd eds, John Wiley and Son, LTD, Chichester.
De Mesquita, B., and L.E. Cohen. 1995. "Self Interest, Equity, and Crime Control: A Game- Theoretic Analysis of Criminal Decision Making," 33 Criminology 483-518.
Passell, P., and J.B. Taylor. 1977. "The Deterrence Effect of Capital Punishment: Another View," 67 American Economic Review 445-451.
Polinsky, A.M., and S. Shavell. 2000. "Economic Theory of Public Enforcement of Law," 38 Journal of Economic Literature 45-76.
Polinsky, A.M., and S. Shavell. 2001. "Corruption and Optimal Law Enforcement." 81 Journal of Public Economics 1-24. ￼￼￼ Polinsky, A.M., and S. Shavell. 2007 forthcoming. "The Theory of Public Enforcement of Law," in A.M. Polinsky and S. Shavell, eds. Handbook of Law and Economics 1, North Holland.
Rasmusen, E. 1996. "Stigma and Self-Fulfilling Expectations of Criminality," 39 Journal of Law and Economics 519-544.
U.S. Department of Justice (DOJ). 2003. "Felony Defendants in Large Urban Counties 2000." Washington DC: U.S. Department of Justice.