Abstract
The aim of this paper is to verify if the historic sentence of the Italian Supreme Court in Plenary Session no. 500/1999, has effectively contributed to diminishing incentive in the bribes market in Italy. To this aim we refer to the theoretical model of Acemoglu and Verdier (2000). The empirical analysis is based on a case study conducted in Sicily, in the province of Catania, by using a unique data set. The main results of the paper are that paying bureaucrats by means of an efficiency wage could be not useful in reducing corruption. An extension of the liability rule for public administration employees and civil servants may reduce the phenomenon of bribe exchanging. Finally, the perfect specification of property rights is helpful in reducing corruption.
Published Version
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