Applying Satellite Luminosity Data to Analyse the Redistributive Aspects of Corruption and Rent-Seeking.

The empirical analysis of political rent-seeking, corruption and the activity of the shadow economy has not been possible so far due to a lack of data. Macroeconomic data is often of poor quality or not available at a disaggregated level. In addition, official statistics on, say, GDP or public spending may be strategically manipulated by governments in an attempt to disguise the exploitation of political rents. The aim of this project is to overcome this data-problem by applying satellite data on night-time light as a proxy for economic activity for any region in any country. This project will identify the beneficiaries of rent-seeking, the sources of these rents and political institutions that can reduce rent-seeking activities.