Pieroni, Luca and d'Agostino, Giorgio and Bartolucci, Francesco (2013): Identifying corruption through latent class models: evidence from transition economies.
Preview |
PDF
MPRA_paper_43981.pdf Download (4MB) | Preview |
Abstract
Evaluation of corrupt activities is incrementally based on administration of questionnaires to firms in business, and generally involves a large number of items. Data collected by questionnaires of this type can be analyzed by Latent Class (LC) models in order to classify firms into homogeneous groups according to the perception of corruption. In this paper, we propose a multidimensional framework, based on an LC model, to identify various types of corruption. By using a dataset for transition economies, we identify four classes of corrupt activities, which go beyond the usual classification into administrative and political types of corruption; we then validate our estimates by using a direct administrative corruption index from the same dataset and by comparing, at country level, corruption perception rankings published by Transparency International. The potential of the proposed approach is illustrated through an application to the relationship between firms' competitiveness and the identified latent corruption classes, with evident heterogeneity in the interpretation of results regarding policy implications.
Item Type: | MPRA Paper |
---|---|
Original Title: | Identifying corruption through latent class models: evidence from transition economies |
Language: | English |
Keywords: | Latent class models, multidimensional item response theory, corruption, transition economies |
Subjects: | D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C52 - Model Evaluation, Validation, and Selection D - Microeconomics > D2 - Production and Organizations > D22 - Firm Behavior: Empirical Analysis |
Item ID: | 43981 |
Depositing User: | Luca Pieroni |
Date Deposited: | 25 Jan 2013 14:57 |
Last Modified: | 27 Sep 2019 18:27 |
References: | Ades, A. and Di Tella, R., "The new economics of corruption: a survey and some new results." Political Studies, 45 (1997), 496-515. Ades, A. and Di Tella, R., "Rents, competition, and corruption." American Economic Review, 89 (1999), 982-993. Akaike, H., "Second International Symposium on Information Theory", in Akademiai Kiado, eds., Information Theory and an Extension of the Maximum Likelihood Principle(Budapest, 1973), 267-281. Anderson, J. H. and Gray, C. W., "Anticorruption in Transition 3: Who is Succeeding ...and Why?" (World Bank, Washington D.C., 2006). Andersson, S. and Heywood, P. M. "The politics of perception: use and abuse of Transparency international's approach to measuring corruption", Political Studies, 57 (2009), 746-767. Andrews, R. L. and Currim, I. S., "A comparison of segment retention criteria for mixture logit models", Journal of Marketing Research, 40 (2003), 235-243. Baneld, J. D. and Raftery, A. E., "Model-based Gaussian and non-Gaussian clustering", Biometrics, 49 (1993), 803-821. Bardhan, P., "Corruption and development: a review of issues", Journal of Economic Literature, 35 (1997), 1320-1346. Bardhan, P., "The economist's approach to the problem of corruption", World Development, 34 (2006), 341-348. Bartolucci, F. "A class of multidimensional IRT models for testing unidimensionality and clustering items", Psychometrika, 72 (2007), 141-157. Bartolucci, F., d'Agostino, G. and Montanari, G. E., "An investigation of the discriminant power and dimensionality of items used for assessing health condition of elderly people", Discussion Paper, arXiv:1008.3268v1 [stat.AP], 2010. Bartolucci, F., Montanari, G. E. and Pandolfi, S., "Item Selection by an Extended Latent Class Model: An Application to Nursing Homes Evaluation", Discussion Paper, SSRN, 2012. Biernacki, C. and Govaert, G., "Choosing Models in Model-based Clustering and Discriminant Analysis", Discussion Paper, Institut National de Recherche en Informatique et en Automatique, 1998. Bliss, C. and Di Tella, R., "Does competition kill corruption?", Journal of Political Economy, 105 (1997), 1001-23. Bock, R.D., "A brief history of item response theory", Educational Measurement: Issues and Practice, 16 (1997), 21-23. Cappellari, L. and Jenkins, SP., "Summarizing multiple deprivation indicators", In: Jenkins S, Micklewright J, eds. Inequality and Poverty: Re-examined. (Oxford: Oxford University Press, 2007), 166-184. Clarke, G. R. G. and Xu, L. C., "Ownership, competition, and corruption: bribe takers versus bribe payers", Discussion Paper No 2783, The World Bank, 2002. Davoodi, H. R. and Abed, G. T., "Corruption, Structural Reforms, and Economic Performance in the Transition Economies", Discussion No 00/132, International Monetary Fund, 2000. Delavallade, C., "What Drives Corruption? Evidence from North African Firms", Discussion Paper No 244, Economic Research Southern Africa, 2011. Dempster, A. P., Laird, N. M. and Rubin, D. B., "Maximum likelihood from incomplete data via the EM algorithm", Journal of the Royal Statistical Society. Series B (Methodological), 39 (1977), 1{38. Djankov, S., Glaeser, E., La Porta, R., Lopez-de-Silanes, F. and Shleifer, A., "The new comparative economics. Journal of Comparative Economics", 31 (2003), 595-619. Dreher, A. and Gassebner, M., "Greasing the wheels? The impact of regulations and corruption on firm entry", Public Choice, (2011), DOI 10.1007/s11127-011-9871-2. Dreher, A., Kotsogiannis, C. and McCorriston, S., "Corruption around the world: evidence from a structural model", Journal of Comparative Economics, 35 (2007), 443-466. Dreher, A. and Schneider, F., "Corruption and the Shadow Economy: An Empirical Analysis", Public Choice, 144 (2006), 215-238. Falcetti, E., Lysenko, T. and Sanfey, P., "Reforms and growth in transition: Re-examining the evidence", Journal of Comparative Economics, 34 (2006), 421-445. Faye, O., de Laat, J. and Zulu, E., Poverty Dynamics and Mobility in Nairobis Informal Settlements (APHRC, 2009). Fries, S., Lysenko, T. and Polanec, S., "The 2002 Business Environment and Enterprise Performance Survey: results from a survey of 6,100 firms" Discussion Paper No. 83, European Bank for Reconstruction and Development, 2003. Gauthier, B. and Reinikka, R., "Shifting tax burdens through exemptions and evasion - an empirical investigation of Uganda", Discussion Paper No. 2735, The World Bank, 2001. Goodman, L. A., "Exploratory latent structure analysis using both identifiable and unidentifiable models", Biometrika, 61 (1974), 215-231. Goodman, L. A., Analyzing qualitative/categorical data log-linear models and latent-structure analysis, (Addison-Wesley Pub. Co, 1978). Grae, P., "Why should one trust in corruption? The linkage between corruption, trust, norms, and social capital", in Graf Lambsdor, J., Taube, M., Schramm, M., eds., The New Institutional Economics of Corruption (Routledge, London, 2005), 21-42. Hambleton, R. K. (ed.) Handbook of Modern Item Response Theory (Springer, 1996). Harstad, B. and Svensson, J., "From Corruption to Lobbying and Economic Growth", mimeo, Northwestern University, 2008. Hellman, J. G., Joel S. and Kaufmann, D., "Seize the State, Seize the Day: State Capture, Corruption and Influence in Transition", Discussion Paper No. 2444, World Bank, 2004. Paper. Herzfeld, T. and Weiss, C., "Corruption and legal (in)effectiveness: an empirical investigation", European Journal of Political Economy, 19 (2003), 621-632. Hodgson, G. M., "Institutions, recessions and recovery in the transitional economies", Journal of Economic Issues, 90 (2006), 1043-1061. Johnson, S., Kaufmann, D. and Zoido-Lobaton, P., "Corruption, public finances, and the unofficial economy", Discussion Paper No. 2169, The World Bank, 1999. Kaufmann, D., Kraay, A. and Mastruzzi, M., "Governance Matters III: Governance Indicators for 1996-2002", Discussion Paper No. 3106, World Bank, 2003. Kuklys, W., "Measuring standards of living in the UK an application of Sens functioning approach using structural equation models", Discussion Paper on Strategic Interaction, Max Planck Institute, 2004. Lambsdor, J. G., The Institutional Economics of Corruption and Reform: Theory, Evidence and Policy (Cambridge University Press, 2007). Licht, A. N., Goldschmidt, C. and Schwartz, S. H., "Culture rules: the foundations of the rule of law and other norms of governance", Journal of Comparative Economics,35 (2007), 659-688. Magidson, J. and Vermunt, J. K., "Latent class factor and cluster models, bi-plots, and related graphical displays", Sociological Methodology, 31 (2001), 223-264. Memisolu, D. and Durguin, A. a., "Public administration reforms and corruption in Turkey", Discussion Paper, Suleyman Demirel University, 2008. Mocan, N., "What determines corruption? International evidence from microdata", Economic Inquiry, 46 (2008), 493-510. Neumann, R. and Graeff, P., "A multitrait-multimethod approach to pinpoint the validity of aggregated governance indicators", Quality & Quantity: International Journal of Methodology, 44 (2010), 849-864. Nowak, R., "Corruption and transition economies", Presented to the preparatory seminar for the 9th OCSE Economic Forum, Bucharest, 2001. Open Society Institute, "Monitoring the EU Accession Process: Corruption and Anti-Corruption Policy", Discussion Paper. Rasch, G., "On general laws and the meaning of measurement in psychology", Berkeley Symposium on Mathematical Statistics and Probability, 4 (1961), 321-333. Reinikka, R. and Svensson, J., "Survey techniques to measure and explain corruption", Discussion Paper No. 3071, The World Bank, 2003. Rose-Ackerman, S., Corruption and Government: Causes, Consequences, and Reform (Cambridge University Press, 1999). Rose-Ackerman, S., Governance and Corruption (Cambridge University Press, 2004), 301-344. Schwarz, G., "Estimating the dimension of a model", The Annals of Statistics, 6 (1978), 461-464. Scott, J. C., "Comparative political corruption." (Prentice-Hall Englewood Clis, N.J, 1972). Shleifer, A. and Vishny, R. W., "Corruption", The Quarterly Journal of Economics, 108 (1993), 599-617. Svensson, J., "Who must pay bribes and how much? Evidence from a cross section of firms", The Quarterly Journal of Economics, 118 (2003), 207-230. Svensson, J., "Eight questions about corruption", Journal of Economic Perspectives, 19 (2005), 19-42. Tanzi, V., "Corruption Around the World - Causes, Consequences, Scope, and Cures", Discussion Paper No. 98/63, International Monetary Fund, 1998. Thomas, M., "What do the Worldwide Governance Indicators Measure?", Discussion Paper, Social Science Research Network (SSRN), 2007. Transparency International, "Global Corruption Report", Tech. rep, 2008. Warren, E. M., "What does corruption mean in a democracy?", American Journal of Political Science, 48 (2004), 328-343. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/43981 |