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Misunderestimating corruption
 
Author:Kraay, Aart; Kraay, Aart; Murrell, Peter; Collection Title:Policy Research working paper ; no. WPS 6488
Country:World; Date Stored:2013/06/17
Document Date:2013/06/01Document Type:Policy Research Working Paper
SubTopics:Information Security & Privacy; Scientific Research & Science Parks; Science Education; Statistical & Mathematical Sciences; PsychologyLanguage:English
Major Sector:Public Administration, Law, and JusticeRel. Proj ID:1W-Reticent Respondents In Enterprise Surveys -- -- P120642;
Region:The World RegionReport Number:WPS6488
Sub Sectors:General public administration sectorTF No/Name:TF095860-KCP II - Reticent Respondents
Volume No:1 of 1  

Summary: Estimates of the extent of corruption rely largely on self-reports of individuals, business managers, and government officials. Yet it is well known that survey respondents are reticent to tell the truth about activities to which social and legal stigma are attached, implying a downward bias in survey-based estimates of corruption. This paper develops a method to estimate the prevalence of reticent behavior, in order to isolate rates of corruption that fully reflect respondent reticence in answering sensitive questions. The method is based on a statistical model of how respondents behave when answering a combination of conventional and random-response survey questions. The responses to these different types of questions reflect three probabilities -- that the respondent has done the sensitive act in question, that the respondent exhibits reticence in answering sensitive questions, and that a reticent respondent is not candid in answering any specific sensitive question. These probabilities can be estimated using a method-of-moments estimator. Evidence from the 2010 World Bank Enterprise survey in Peru suggests reticence-adjusted estimates of corruption that are roughly twice as large as indicated by responses to standard questions. Reticence-adjusted estimates of corruption are also substantially higher in a set of ten Asian countries covered in the Gallup World Poll.

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