The Behavioural Economics of Corruption

While corruption is pervasive around the world, the form is takes can vary in different situations. In some cases it takes the form of harassment or collusion between different parties and in other situations it is in the shape of embezzlement. This proposal uses behavioural economics to understand corruption and identifies novel ways to curb it. In particular, it examines the effectiveness of different policy instruments when faced with distinct forms of corruption. It also explores how corruption affects the giving behaviour of donors. Examining the causes and consequences of different kinds of corruption is critical for developing appropriate mitigation policies.